United States Air Force
Project Managers’
Guide for
Design and Construction
Revised: November 28, 2007
Supersedes these Publications:
The United States Air Force Manager’s Guide for Design and Construction (June 1, 2000)
Publication Information:
OPR: HQ AFCEE/TDB
Certified by: HQ AF/A7CP
Distribution: This publication is available digitally on the AFCEE Website
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USAF Project Managers’ Guide for Design and Construction
January 2008
TABLE OF CONTENTS_Toc184035619
CHAPTER 1 - INTRODUCTION
1-1
OVERVIEW..................................................................................................................................... 1-2
1-2
FIVE PRINCIPLE PROJECT ELEMENTS ..................................................................................... 1-3
1-3
RESPONSIBILITIES....................................................................................................................... 1-4
1-3.1
Installations ............................................................................................................................. 1-4
1-3.2
Major Commands (MAJCOMS) .............................................................................................. 1-4
1-3.3
Field Operating Agency (FOA) ............................................................................................... 1-4
1-3.4
The Air Force Civil Engineer (AF/A7C)................................................................................... 1-4
1-3.5
Office of the Secretary of the Air Force (SAF)........................................................................ 1-5
1-3.6
Congressional Committees..................................................................................................... 1-5
1-4
MILCON EXECUTION GOALS ...................................................................................................... 1-5
1-5
MILITARY FAMILY HOUSING (MFH) ............................................................................................ 1-5
1-6
MEDICAL CONSTRUCTION.......................................................................................................... 1-6
1-7
OPERATIONS AND MAINTENANCE (O&M)................................................................................. 1-6
CHAPTER 2 - PLANNING AND PROGRAMMING
2-1
USER NEED ................................................................................................................................... 2-1
2-2
SITING AND PLANNING CONSIDERATIONS .............................................................................. 2-2
2-3
DRAFT DD 1391............................................................................................................................. 2-3
2-4
CUSTOMER CONCEPT DOCUMENT (Developing Requirements).............................................. 2-4
2-4.1
CCD Preparation and Funding ............................................................................................... 2-4
2-4.2
The CCD Process ................................................................................................................... 2-4
2-4.3
CCD Benefits .......................................................................................................................... 2-4
2-5
CCD CHARRETTE ......................................................................................................................... 2-4
2-5.1
CCD Charrette Team .............................................................................................................. 2-5
2-5.2
CCD Charrette Report ............................................................................................................ 2-5
2-6
ENVIRONMENTAL IMPACT ANALYSIS PROCESS (EIAP) ......................................................... 2-7
2-7
MILCON PROGRAM DEVELOPMENT.......................................................................................... 2-7
2-7.1
Air Staff and OSD Actions ...................................................................................................... 2-7
2-7.2
Milestones of Typical Submissions......................................................................................... 2-8
2-7.3
Approval Authority................................................................................................................... 2-9
2-8
AUTHORIZATIONS ........................................................................................................................ 2-9
2-8.1
Congressional Review ............................................................................................................ 2-9
2-8.2
Notification Action (A/E Fees Greater than $1,000,000) ...................................................... 2-10
CHAPTER 3 - DESIGN
3-1
DESIGN DIRECTIVES ................................................................................................................... 3-1
3-1.1
Air Staff Design Instruction (DI) .............................................................................................. 3-1
3-1.2
AF DM/CM Design Instruction (DI) ......................................................................................... 3-2
3-1.3
Authority to Advertise Construction ........................................................................................ 3-2
3-1.4
Authority to Award................................................................................................................... 3-3
3-2
PROJECT MANAGEMENT ............................................................................................................ 3-4
3-2.1
Project Management Plan ...................................................................................................... 3-4
3-2.2
Acquisition Strategy ................................................................................................................ 3-4
3-2.3
Delivery Methods .................................................................................................................... 3-4
3-2.4
Milestones and Submittals...................................................................................................... 3-5
3-2.5
Scheduling and Critical Need Dates ....................................................................................... 3-6
3-2.6
Design Agent Schedules ........................................................................................................ 3-6
3-2.7
Construction Phasing.............................................................................................................. 3-6
3-3
DESIGN CONSIDERATIONS......................................................................................................... 3-7
3-3.1
Environmental Permitting........................................................................................................ 3-7
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3-3.2
Sustainable Development....................................................................................................... 3-7
3-3.3
Architectural Compatibility ...................................................................................................... 3-7
3-3.4
Antiterrorism/Force Protection (AT/FP) .................................................................................. 3-7
3-3.5
Interior Design Policy.............................................................................................................. 3-8
3-3.6
Accessibility ............................................................................................................................ 3-8
3-3.7
Building Codes........................................................................................................................ 3-9
3-3.8
Renderings and Models.......................................................................................................... 3-9
3-4
A-E SERVICE ACQUISITION......................................................................................................... 3-9
3-4.1
Architectural-Engineering (A-E) Services ............................................................................... 3-9
3-5
DESIGN DEVELOPMENT............................................................................................................ 3-11
3-6
CONTRACT DOCUMENT DEVELOPMENT................................................................................ 3-12
3-6.1
Charrette (15% Design or Project Definition) ....................................................................... 3-13
3-6.2
Early Preliminary Design Submittal (30% Design) ............................................................... 3-15
3-6.3
Preliminary Design Submittal (60% Design)......................................................................... 3-15
3-6.4
Pre-Final Design Submittal (90% Design) ............................................................................ 3-16
3-6.5
Corrected Final Design Submittal (100% Design) ................................................................ 3-17
3-6.6
Ready to Advertise (RTA)..................................................................................................... 3-17
3-6.7
Procedures for “On-Hold” Projects ....................................................................................... 3-17
3-7
CONTRACT DOCUMENT FORMAL REVIEW PROCESS .......................................................... 3-18
3-7.1
Review Process Content ...................................................................................................... 3-18
3-7.2
Review Process Transmittal ................................................................................................. 3-18
3-7.3
Review Process A-E Annotations ......................................................................................... 3-18
3-8
COST CONTROL AND SCOPE CHANGES ................................................................................ 3-19
3-8.1
Cost Control and Scope Changes during Design................................................................. 3-19
3-8.2
Value Engineering................................................................................................................. 3-20
3-9
PERFORMANCE PERIODS AND OCCUPANCY PHASING ...................................................... 3-21
CHAPTER 4 - CONSTRUCTION CONTRACT
4-1
CONTRACT TYPES ....................................................................................................................... 4-1
4-2
CONTRACT DOCUMENTS............................................................................................................ 4-2
4-2.1
Liquidated Damages............................................................................................................... 4-3
4-2.2
Construction Sign Standards .................................................................................................. 4-3
4-3
CONSTRUCTION BID PROCESS ................................................................................................. 4-3
4-4
SOLICITATION PHASE.................................................................................................................. 4-4
4-4.1
Predefinition of Responsibility in Solicitations ........................................................................ 4-4
4-4.2
Invitation for Bids and Requests for Proposals....................................................................... 4-4
4-4.3
Bid Reports ............................................................................................................................. 4-5
4-4.4
Protests................................................................................................................................... 4-5
4-5
CONTRACT AWARD ..................................................................................................................... 4-5
4-5.1
Pre-Positioning Funds ............................................................................................................ 4-5
4-5.2
Adverse Bids........................................................................................................................... 4-6
4-5.3
Award and the Contract Award Report ................................................................................... 4-6
4-5.4
Funding and Authority to Award ............................................................................................. 4-6
CHAPTER 5 – CONSTRUCTION
5-1
CONSTRUCTION STARTUP ......................................................................................................... 5-1
5-1.1
Preconstruction Conference ................................................................................................... 5-2
5-1.2
Notice to Proceed ................................................................................................................... 5-3
5-2
SUBMITTALS ................................................................................................................................. 5-3
5-3
QUALITY CONTROL AND QUALITY ASSURANCE ..................................................................... 5-3
5-3.1
Construction Inspection .......................................................................................................... 5-4
5-3.2
Construction Surveillance ....................................................................................................... 5-4
5-3.3
Quality Indicators .................................................................................................................... 5-5
5-3.4
Quality Assurance by Agent ................................................................................................... 5-5
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5-4
RESIDENT CONSTRUCTION MANAGER (RCM)......................................................................... 5-6
5-4.1
Agent RCM Authority .............................................................................................................. 5-6
5-5
SCHEDULE CONTROL.................................................................................................................. 5-6
5-6
IN-PROGRESS COST CONTROL ................................................................................................. 5-7
5-6.1
Cost Status Report.................................................................................................................. 5-7
5-6.2
Work-In-Place Report ............................................................................................................. 5-8
5-6.3
Change and Claim Detail Report ............................................................................................ 5-8
5-6.4
Value Engineering Change Proposals (VECP) ...................................................................... 5-9
5-6.5
Requests for Information (RFIs) ............................................................................................. 5-9
5-7
CONTRACT MODIFICATIONS ...................................................................................................... 5-9
5-7.1
Types of Changes................................................................................................................... 5-9
5-7.2
Managing Modifications ........................................................................................................ 5-11
5-7.3
Construction Contract Modification Funding......................................................................... 5-11
5-7.4
PA Threshold Limits.............................................................................................................. 5-12
5-8
SPECIAL INTEREST CONSTRUCTION PROGRAM .................................................................. 5-12
5-8.1
Management Meetings ......................................................................................................... 5-12
5-8.2
Quality Assurance Plan (QAP) ............................................................................................. 5-13
5-8.3
Financial Information ............................................................................................................ 5-13
5-8.4
Special Considerations ......................................................................................................... 5-13
5-9
A-E RESPONSIBILITY ................................................................................................................. 5-14
CHAPTER 6 – PROJECT CLOSEOUT
6-1
RED ZONE POLICY ON PROJECT CLOSE-OUT......................................................................... 6-1
6-1.1
Red Zone Meeting Checklist................................................................................................... 6-2
6-1.2
Key Project Completion Milestones Checklist ........................................................................ 6-3
6-2
OPERATIONS, MAINTENANCE, AND TRAINING ........................................................................ 6-4
6-2.1
System Testing and Training of O&M Personnel ................................................................... 6-4
6-2.2
System Startup ....................................................................................................................... 6-4
6-2.3
Commissioning ....................................................................................................................... 6-4
6-3
ACCEPTANCE INSPECTIONS...................................................................................................... 6-5
6-3.1
Applicable Programs............................................................................................................... 6-5
6-3.2
Responsibilities ....................................................................................................................... 6-6
6-3.3
Design Deficiencies ................................................................................................................ 6-6
6-3.4
Construction Deficiencies ....................................................................................................... 6-6
6-3.5
Joint Occupancy ..................................................................................................................... 6-6
6-3.6
DD Form 1354 ........................................................................................................................ 6-7
6-3.7
Facility Acceptance/Beneficial Occupancy Date (BOD) ......................................................... 6-7
6-3.8
Warranty ................................................................................................................................. 6-8
6-3.9
As-Built Drawings.................................................................................................................... 6-9
6-4
CLAIMS........................................................................................................................................... 6-9
6-5
PHYSICAL COMPLETION ........................................................................................................... 6-10
6-5.1
Financial Closeout ................................................................................................................ 6-11
6-5.2
Post Occupancy Evaluation.................................................................................................. 6-11
APPENDIX
APPENDIX A – REFERENCES AND LINKS .............................................................................................. A1
A-1
Accessibility References.............................................................................................................. A1
A-2
Air Force References and Organizations .................................................................................... A1
A-3
Air Force Design and Project Management Guides .................................................................... A2
A-4
Air Force Instructions (AFI).......................................................................................................... A2
A-5
Air Force FAR Supplements (AFFARS) ...................................................................................... A3
A-6
Air Force Handbooks (AFH) and Manuals (AFM)........................................................................ A3
A-7
AF Occupational and Health Standards (AFOSH) ...................................................................... A3
A-8
Antiterrorism/Force Protection (AT/FP) ....................................................................................... A3
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USAF Project Managers’ Guide for Design and Construction
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A-9
Construction Industry References ............................................................................................... A4
A-10
Department of Defense............................................................................................................ A4
A-11
Department of Defense FAR Supplements (DFARS).............................................................. A5
A-12
Engineering Technical Letters (ETLs) ..................................................................................... A5
A-13
Federal Acquisition Regulations (FAR) ................................................................................... A5
A-14
Forms....................................................................................................................................... A8
A-15
Government References.......................................................................................................... A8
A-16
Sustainable Development References .................................................................................... A8
A-17
Unified Facilities Criteria (UFC) ............................................................................................... A9
A-18
United States Code................................................................................................................ A10
APPENDIX B – CONSTRUCTION CONTRACT TYPES ............................................................................ B1
B-1
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts............................................................... B1
B-2
Firm Fixed Price (FFP) ................................................................................................................ B1
B-3
Fixed Price with Economic Price Adjustment (FPEcPA) ............................................................. B1
B-4
Fixed Price with Incentive Firm (FPIF) ........................................................................................ B2
B-5
Fixed Price with Award Fees (FPAF)........................................................................................... B2
B-5
Cost Plus Incentive Fee (CPIF) ................................................................................................... B3
B-6
Cost Plus Award Fee (CPAF) ...................................................................................................... B3
B-7
Cost Plus Fixed Fee (CPFF)........................................................................................................ B3
B-8
Letter Contracts ........................................................................................................................... B4
B-9
Time and Materials Contracts...................................................................................................... B4
B-10
Low Price Technically Acceptable Solicitation......................................................................... B4
APPENDIX C – COMMON DELIVERY METHODS .................................................................................... C1
C-1
Traditional (Design-Bid-Build)...................................................................................................... C1
C-2
Two-Step Design Build ................................................................................................................ C1
C-3
One-Step Design Build ................................................................................................................ C2
C-4
Bridging Design Build .................................................................................................................. C2
C-5
Design Build+ (DB+) .................................................................................................................... C2
C-6
Design Build (Turnkey) ................................................................................................................ C3
C-7
Design Build (Fast Track) ............................................................................................................ C3
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USAF Project Managers’ Guide for Design and Construction
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CHAPTER 1 - INTRODUCTION
Excellent installations foster pride, productivity, and enhance the Air Force mission. The quality of
an installation influences the performance of our most important resource, our people. This Guide
is written to assist Air Force Design and Construction Project Managers (AF DM/CM) in the quest
for excellence in design and construction of Air Force facilities. This guide is a recommendation
of best practices to achieve successful MILCON execution and should not limit individual
AF DM/CM flexibility. You are encouraged to read and use AFI 32-1021, Planning and
Programming Military Construction (MILCON) Projects and AFI 32-1023, Design and Construction
Standards and Execution of Facility Construction information. AF DM/CM at OCONUS locations
will need to consider host-nation procedures and requirements (not provided in this guidance). Air
Force Transformation has changed the relationships and responsibilities between the Air Staff,
Major Commands (MAJCOMs), Installations and the Field Operating Agencies (FOA). The
following matrix illustrates these new relationships:
Air Force MILCON Process Ownership Matrix
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USAF Project Managers’ Guide for Design and Construction
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Roles & Flow for Requirements & Funds Resulting from Transformation
Acronyms used in above diagram:
EIAP - Environmental Impact Analysis Process
CCD - Customer Concept Document
TOA - Total Obligation Authority
POM - Program Objective Memorandum
FOA – Field Operating Agency (AFCEE)
DM/CM - Design Manager/Construction Manager
DA/CA - Design Agent/Construction Agent
PI/DI - Planning Instruction/Design Instruction (note: in ACES PM there is no ‘PI’; it is DI #1)
SAF/FMBIC - Secretary of the Air Force Financial Management and Comptroller
1-1
OVERVIEW
The primary purpose of the Military Construction (MILCON) program is to provide major
construction on DOD installations for all types of buildings, airfield pavements, utility systems,
roads, etc, exceeding minor construction authority and to achieve the Air Force MILCON goal of
“Building Quality Facilities…On Time and On Budget” to meet mission requirements. The MILCON
Process Diagram below illustrates the time frame requirements and provides distinction between
program development (Planning and Programming) and project management (Design,
Construction Contract, Build, and Closeout):
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USAF Project Managers’ Guide for Design and Construction
January 2008
This guide is generally focused on traditional design-bid-build (DBB) type projects. However, many
of the principles outlined herein can be applied to design-build (DB), and where applicable, specific
reference to DB is made. For detailed information on the DB process, refer to the Air Force Guide
to Design-Build This guide follows MILCON projects from the earliest stages, through the approval
and funding processes, and then through Design, Construction and Closeout. This guide also tries
to help distinguish the differences between program development and project management in an
effort to help AF DM/CMs recognize their specific responsibilities. Some chapters provide details
regarding processes and activities that are outside the responsibilities of an AF DM/CM (Design
Manager/Construction Manager) and are for information only.
While managers of other types of projects may benefit from this guide, it is intended to primarily
address MILCON projects. Managers of Non-appropriated Fund (NAF) projects should refer to AFI
34-205, Services Non Appropriated Funds Projects and AFI 32-1022, Planning and Programming
Non-Appropriated Fund Facility Construction Projects. Managers of Military Family Housing (MFH)
projects should consult US Air Force Family Housing Guide for Planning, Programming, Design,
and Construction for guidance. For construction of AF hospitals, clinics, and other medical
facilities, AF DM/CMs should refer to UFC 4-510-01, Design: Medical Military Facilities.
1-2
FIVE PRINCIPLE PROJECT ELEMENTS
This Guide is intended to address MILCON project management. It is arranged according to five
principle elements found in virtually every project an Air Force Project Manager is likely to
encounter. Whether a project is Design-Bid-Build or Design-Build, the five principle elements are:
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•
Planning and Programming
•
Design (or RFP preparation for design-build)
•
Construction Contract
•
Construction (or design and build for design-build)
•
Project Closeout
These five elements follow the sequence of actions in a typical Design-Bid-Build project. DesignBuild projects combine design with construction after contract award. For Design-Build, there is
some design that occurs during development of the Request for Proposal (RFP) before contract
award, however, the level of design prior to contract award for design-build may be as little as 10%
or less.
1-3
RESPONSIBILITIES
1-3.1
Installations
Installations are responsible for requirements identification, to include development of initial draft
DD Form 1391’s, Requirements Documents and National Environmental Policy Act (NEPA)
documentation. The installation will be the AF DM/CM Point of Contact (POC) for requirements
verification during design and construction. The primary responsibility for programming MILCON
projects lies with the installation commanders, who identify, plan, and program facilities to support
their assigned missions in accordance with their base general plans.
1-3.2
Major Commands (MAJCOMS)
MAJCOMs are responsible for MILCON project requirements verification and preparation of
programming documents, to include Official (final) DD Forms 1391 and Customer Concept
Documents (CCDs) as applicable. MAJCOMs will be consulted on scope issues resulting from
change of mission requirements or reductions required for execution within the PA. However,
AFCEE will have final authority on acceptance of any changes. MAJCOMs are responsible for
providing instructions to installation commanders for planning and preparing construction
programs. In addition, MAJCOMs:
1-3.3
•
Validate facility requirements and ensure maximum use of existing facilities
•
Support installation programming and 1391 development
•
Submit programs to the Headquarters Air Force, Programs Division (AF/A7CP)
•
Consult with the FOA when required
Field Operating Agency (FOA)
Air Force Center for Engineering and the Environment (AFCEE) is the FOA responsible for
managing all AF MILCON (i.e., DM/CM roles and responsibilities). AFCEE will manage the
program as a corporate AF requirement and decisions will be driven by the corporate AF mission.
1-3.4
The Air Force Civil Engineer (AF/A7C)
The AF/A7C is responsible for policy development, interpretation, and oversight to ensure
compliance and progress toward goals. The Programs Division (AF/A7CP) is the lead in AF/A7C
for MILCON program development and execution. The AF/A7C is responsible for:
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1-3.5
•
Resource advocacy within the Planning, Programming, Budgeting and Execution
System (PPBE) process
•
Issuing guidance to the MAJCOMs for submitting their MILCON program
•
Reviewing and validating MAJCOM submittals
•
Issuing Design Instructions (DI) authorizing the start of project design (also called a
Planning Instruction)
•
Issuing Design Instructions (DI) authorizing any cost and/or scope changes for the
project
•
Working with other AF offices to determine the proper size and content of the
MILCON program
•
Advocating and defending the MILCON program during the OSD and Congressional
reviews
Office of the Secretary of the Air Force (SAF)
The Deputy Assistant Secretary of the Air Force (Installations) (SAF/IEI) is responsible for facility
construction planning and programming policy and oversight. The Deputy Assistant Secretary of
the Air Force (Budget) (SAF/FMB) is responsible for budgeting and submitting the Air Force Budget
Estimate Submission (BES) to OSD and the Air Force MILCON portion of the President’s Budget
(PB) to Congress. SAF/FMB is also responsible for distributing funds once MILCON projects are
authorized and appropriated by Congress.
1-3.6
Congressional Committees
As part of the PB, AF/A7CP submits an AF BES to Congress. The BES is reviewed by the
following four Congressional committees:
•
•
•
•
House Armed Services Committee (HASC)
Senate Armed Services Committee (SASC)
House Appropriations Committee (HAC)
Senate Appropriations Committee (SAC).
In order for the project to be approved for construction, it must be authorized by the joint
conferences of the HASC and the SASC, and the funds must be appropriated by the joint
conferences of the HAC and the SAC.
1-4
MILCON EXECUTION GOALS
MILCON execution goals provide various schedule and cost metrics for individual MILCON
projects, and are outlined in the latest version of the Air Force MILCON Program Management
Plan (PgMP).
1-5
MILITARY FAMILY HOUSING (MFH)
MFH MILCON projects will only involve USAF owned Military Family Housing (MFH). MILCON
funds are never expended on leased or privatized MFH. For MFH MILCON, the AF goal is to
provide quality, energy-efficient, sustainable, and low maintenance housing that supports the
needs of military families and reinforces the development of a strong sense of community. Below
is a list of reference documents that provide detailed information and guidance regarding AF MFH:
1-5
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•
AFI 32-6001, Family Housing Management
•
AFI 32-6002, Family Housing Planning, Design, and Construction
•
AFI 32-6003, General Officer Quarters Management
•
AFI 32-6004, Furnishings Management
•
US Air Force Family Housing Guide for Planning, Programming, Design, and
Construction
•
Air Force Family Housing Support Facilities Guide
•
Air Force Housing Privatization website
•
HQ USAF/ILE memo, "New Military Family Housing (MFH) Size Standards," 28 May
2002
•
USAF GOQ Guide Resident’s Handbook; GOQ Standards Volume I
•
USAF GOQ Standards for Planning, Programming, Design, and Construction; GOQ
Standards Volume II
•
Project Managers Guide to Military Family Housing
1-6
MEDICAL CONSTRUCTION
For medical projects, the process varies somewhat from other MILCON. There are no Planning
Instructions (PI) in the medical program, and the DM does not issue a Design Instruction (DI) to the
agent; rather the Office of the Assistant Secretary of Defense (Health Affairs) (OASD (HA)) issues
this authority directly to the agent. Medical MILCON has six major submittal points of which S4
represents the 35% point and S6 represents the 95% point. Below is a list of reference documents
that provide detailed information and guidance regarding military medical construction:
1-7
•
UFC 4-510-01, Design: Medical Military Facilities (reprint of MIL-HDBK 1191)
•
Memorandum of Understanding Between the AF and the USACE, Design and
Construction Management of Air Force Medical Facility Projects
OPERATIONS AND MAINTENANCE (O&M)
O&M funding is generally for services, minor construction or repair projects or equipment and
supplies for a MILCON project that are not funded with MILCON funds. Refer to the various
Unified Facilities Criteria (UFC) for O&M guidance regarding specific topics.
1-6
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CHAPTER 2 - PLANNING AND PROGRAMMING
The highlighted section of the MILCON Process Diagram below shows the planning and
programming activities detailed in Chapter 2.
2-1
USER NEED
MILCON project planning begins at the installation when a user has a facility requirement which may
not yet be well defined. The user looks to the Base Civil Engineer (BCE) and staff to assist with
facility programming development. Usually, the BCE staff will ask that the user formalize his request
by submitting an AF Form-332, Base Civil Engineer Work Request. From the work request, the BCE
staff can begin project planning.
•
BCE staff works with the user to develop facility requirements needed to
accomplish the mission. This is a key step in the preliminary facility planning and
programming process. The BCE staff will normally start with AFH 32-1084, Facility
Requirements, which provides general requirements for a given facility type. From
this book value, the programmer works with the user and engineering staff to make
adjustments that may be required to determine a preliminary project scope for the
draft DD1391.
•
Evaluate existing assets and determine the most economical means of
satisfying the requirement. New construction should be compared with upgrading
an existing base facility. Upgrading is not always the most appropriate or economical
option.
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USAF Project Managers’ Guide for Design and Construction
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•
2-2
Develop a strong and justifiable case for programming action. One of the most
difficult but important aspects of planning and programming is expressing user needs
in clear, concise and well justified terms. Projects that are well defined and easy to
understand will compete better for scarce MILCON funds.
SITING AND PLANNING CONSIDERATIONS
Initial siting and planning are installation responsibilities. The BCE reviews the base planner’s site
recommendations and tentatively approves alternative sitings for a new MILCON facility. The site
alternatives are then presented by the BCE to the Facilities Board (FB) working group, which is
usually chaired by the Installation Support Group Commander. The FB working group, in-turn,
presents the proposed facility siting to the FB which is chaired by the Installation Commander. After
a review, the FB approves or disapproves the siting. During early phases of a MILCON 1391 project
review, the BCE and AF DM/CM (when involved at this phase) should assure the following have
been considered as a minimum:
•
Base Comprehensive Plan
•
General Plan
•
Component Plans
o Composite Constraints and Opportunities
o Infrastructure
o Land Use and Transportation
o Capital Improvements Program (CIP)
•
Antiterrorism/Force Protection (AT/FP)
•
Collective Protection Systems (CPS) if required
•
Environmental Impact Analysis Process (EIAP)
•
AFI 32-7063, Air Installation Compatible Use Zone (AICUZ) Program
•
UFC 3-260-01, Airfield Planning and Heliport Design, for imaginary surfaces, CZ
(Clear Zone), APZ (Accident Potential Zone), etc.
•
Sustainable Development, especially Leadership in Energy and Environmental
Design (LEED)
•
Architectural Compatibility
•
Accessibility
•
Interior Design
•
Quantity Distance (QD) Arcs and Explosive Safety (Refer to AFMAN 91-201,
Explosive Safety Standards)
•
Temporary Facilities
•
All special items incidental to the project - such as communications, local area
network (LAN), TEMPEST, furnishings (including systems furniture), systems
operating manuals, etc. - are properly identified as funded with non-MILCON
accounts (O&M, Equipment, R&D, etc.) in accordance with the annual AF/A7CC
MILCON call letter.
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•
Refer to AFI 32-1021, Planning and Programming of Facility Construction Projects
and AFI 32-1023 Design and Construction Standards and Execution of Facility
Construction Projects for additional considerations.
QD arc Note: Every new construction project sited within a QD arc must be reviewed by the host
base Weapons Safety Office (SEW). From AFMAN 91-201, Explosive Safety Standards; all
planned construction in support of day-to-day and war plan operations, and
MOOTW/contingency/combat operations exceeding 12 months, not meeting QD standards, must
be approved by the Secretary of the Air Force (SAF). The SAF approval process can take up
to two years. If at all possible, avoid siting new facilities not directly related to the handling of
explosives inside QD arcs. If it’s unavoidable, start the review process with the base SEW as
soon as the project site has been finalized. Refer to the Exception Decision Nomograph - Day-toDay Operations in AFMAN 91-201 to determine approval authority level if your project is sited
within a QD arc.
The AF DM/CM should review the site selected by the installation for a MILCON at the earliest
possible opportunity before design starts to determine, with the BCE and appropriate installation
POCs, whether the proposed site meets criteria and future requirements of the base Comprehensive
Plan including any environmental and QD issues. Siting and scoping decisions should be
thoroughly reviewed before the DD1391 cost and scope are finalized. If the project reaches the
Project Definition Charrette phase and requires re-siting, unforeseen site related costs
(contaminated soils, longer utility runs, additional water, power or sewer requirements for example)
may require an unacceptable level of de-scoping and/or loss of critical project features to remain
within the approved programmed amount. The project can also be unacceptably delayed (see QD
arc note above). Therefore, the initial siting can be critical to the viability of a MILCON project.
2-3
DRAFT DD 1391
The DD Form 1391, Military Construction Project Data document (simply referred to as a 1391) is a
programming tool used to request and justify a user need. As previously noted, it is generated after
the using organization’s AF Form 332 work request is submitted to the BCE. This request is
reviewed and validated by BCE programmer with assistance from the user. It is also checked
against the siting and planning considerations noted above. The request is again reviewed when
presented to and prioritized in the Installation MILCON priorities by the Facilities Utilization Board
(FUB). The project request is further reviewed and prioritized by the MAJCOM, Air Staff and higher
levels of authority during the MILCON approval process.
The DD Form 1391 submitted by the Installation to the MAJCOM is significant for the following
reasons:
•
It defines the scope and Programmed Amount (PA) for the project.
•
This document serves as the budgeting basis for the installation, MAJCOM and the
Air Staff in their long-range acquisition plans. Within these plans, projects are
tentatively prioritized first by the installation, then by the MAJCOM, then by the Air
Staff within a fiscal year.
•
This document is used to generate future authorizations or update current
authorizations for key project items such as project scope and PA.
•
This document is ultimately updated and forwarded to Congress as part of the
Department of Defense (DOD) budget request. Congressional approval of a specific
MILCON, Military Family Housing (MFH), Reserve, or Medical project is based on the
project scope and PA shown on the 1391.
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2-4
CUSTOMER CONCEPT DOCUMENT (Developing Requirements)
As an AF DM/CM, you may be asked by the MAJCOM to assist in validation of the scope and PA in
the 1391. A process can be utilized to improve the 1391 and facilitate initiation of technical design.
This process is variously called Functional Analysis Concept Development (FACD), Customer
Concept Document (CCD), Requirements Document (RD) or Project Planning Document (PPD).
For simplicity, in this Guide the document will be referred to as a CCD.
2-4.1
CCD Preparation and Funding
The CCD is prepared prior to the start of the technical design to fully develop project requirements.
Projects are selected from the FYDP that have the highest probability of becoming approved
projects. The CCD consists of a charrette with the installation customers, BCE staff, MAJCOM,
FOA, Agent and others from the installation with an interest in the project (Communications, Safety,
Security Forces, etc) to fully define facility requirements. The CCD develops or validates the scope
and PA of the 1391 and provides Installation Commander buy-in.
It is important to note that unless otherwise directed, the CCD is identified as an “advanced
planning activity” and must be paid for with operations and maintenance (O&M) funds rather
than planning and design (P&D) funds in accordance with Title 10 U.S.C. 2801, 2807, and DOD
Financial Management Regulation, Vol 3 Chapter 17. See also AFMAN 65-604.
2-4.2
The CCD Process
The CCD should be prepared no later than the beginning of FY-2. A team of MAJCOM
programmers and, if requested the AF DM/CM, review and prepare a list of candidate projects for
CCDs to recommend to the MAJCOM CE for approval. Criteria considered for selection include: is
the project in the FYDP, is it a high Base priority, is it a project in a special interest category, does it
support a new mission, what is the probability of it being a congressional insert or being in next
year’s President Budget, etc. After selection, the MAJCOM and/or AF DM/CM develop a design
strategy with the Agent with the preference that the designer who prepares the CCD would also
prepare the final technical design or RFP (Note: the actual design strategy will be determined after a
Planning Instruction (PI) is issued by A7). This allows the knowledge gained in the CCD process to
be carried into the technical design or RFP. The Agent conducts a charrette at the installation with
the customer, MAJCOM, and FOA as requested, to develop facility requirements, prepare
alternatives, and conduct review meetings to provide a final consensual solution which is
incorporated into a 1391.
2-4.3
CCD Benefits
CCDs help to accurately develop and/or validate the PA by insuring all project requirements and
their costs are addressed. They also insure that often-overlooked or insufficiently programmed
requirements (such as siting, adequate facility scope, site utilities - power, water, sewer,
communications, parking, etc) are addressed and made part of the PA. CCDs also allow the project
to move more expeditiously from planning to technical design, thus reducing design time. User buyin at the beginning reduces user requested changes later in design and construction.
2-5
CCD CHARRETTE
The CCD Charrette is conducted at the installation and ideally occurs before the 1391 for the project
has been finalized. The purpose of the charrette is to solidify the project site, justification, scope,
and programmed amount. Base senior management buy-in and involvement is essential and their
leadership helps to assure user and installation participation in the charrette process. User and
Installation involvement is critical to develop a solid scope and PA for the 1391.
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2-5.1
CCD Charrette Team
The services of a trained professional facilitator may be used to guide the CCD charrette. The
charrette team may also be headed by the AFCEE PM who will act as Facilitator. Facilitators can
take a group of people with diverse interests and backgrounds, who have been brought together to
work on a project and transform them into a focused team with a comprehensive plan of action,
specific deliverables to be achieved, and clear roles and responsibilities. The facilitator is also
tasked with gathering data from the engineering disciplines on the team, then editing and
consolidating the data to prepare the CCD report and preliminary Value Engineering proposals.
Following is the makeup of a typical charrette team:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
2-5.2
AF DM/CM
DA’s project manager
User’s representatives
A-E team (engineers, architects, cost estimator)
Facilitator (AFCEE PM, part of A-E team or under separate contract)
BCE and, depending on the project scope or complexity, other Base support
representatives
MAJCOM Programmer
BCE Programmer
Base Community Planner
Fire Department representative
Environmental Flight representative
Bio-environmental representative
Communication Squadron representative
Security Forces Squadron representative
Safety officer
CCD Charrette Report
The AFCEE PM, facilitator and/or A-E assembles a report to provide documentation of the products
and process of the CCD Charrette. Such documentation provides the decision-history record for the
PA, scope and justification for the 1391 CCD document. It provides a solid foundation for design or
preparation of an RFP as well as the documentation necessary to revisit any decision. Following is
an example of the content of a CCD charrette report:
•
•
•
•
•
•
•
•
•
•
•
New DD 1391 and DD 1391C
AF Form 813
FUB approved site plan
Engineering and Architectural Design Narratives (analysis)
Parametric Cost Estimate - AF Form 1178 (cost estimate summary)
Site Plan, Utility Plan, Demolition Plan, and Schematic Floor Plans and Elevations
Briefing Presentations
Briefing Comments
Unresolved Issues/Action Items
Final Agenda
Acquisition Strategy (Design-Bid-Build or Design-Build)
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Bubble Diagrams
Meeting Notes
Attendee List
Value Engineering Summary
Value Improvement Matrix
Creative Idea List
Design Charrette Approach and Value Engineering Job Plan
Sustainable development recommendations
Supporting Data
Pre-Charrette draft 1391’s
Pre-Charrette conference notes
Hazardous Material surveys
Soil Contamination Location
Site Communications layout and information
Base utility infrastructure information
The CCD charrette report is distributed for comment at the initial, pre-final, and final stages of
completion. When comments are finalized, they are sent to the DA for incorporation in the charrette
report. If any fundamental issues have been modified that will affect the schedule or budget (e.g.,
space requirements have been increased, new site conditions have been discovered, additional offsite utility work will be required, etc.), it may be necessary to reconvene the project team for
additional analysis to resolve any major issues.
By utilizing automated parametric cost models, project managers can take advantage of the most
productive period for smart cost-benefit tradeoffs—during planning and programming. Two critical
outputs of project planning needed for developing the Programmed Amount (PA) are the scope (size
and type of space with special requirements such as secure areas, clean rooms, hardening, etc.)
and supporting facilities (site development, site utilities, landscaping, etc). With facility requirements
as a basis, an initial cost estimate (AF Form 1178) and facility description is prepared using one or
more of the following tools plus the personal experience of the PM, Agent, designer and
programmer:
•
UFC 3-701-07, DOD Facilities Pricing Guide
•
Historical Air Force Construction Cost Handbook
•
DOD 5000.4-M, DOD Cost Analysis Guidance and Procedures (Unit Costs, Area Cost
Factors, Size Adjustment Factors, and Inflation Rates).
•
Air Force Parametric Cost Engineering System (PACES), a parametric system used
by the Air Force and the USACE; free to Air Force with subscription.
•
Parametric Cost Estimating Models (PCEM), a parametric system used by NAVFAC
•
RS Means Cost Estimating Guides
Note: Refer to current AF MILCON Program Management Plan for most recent AF/A7C Policy
guidance for cost and scope approval authority levels.
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2-6
ENVIRONMENTAL IMPACT ANALYSIS PROCESS (EIAP)
Per AFI 32-1021, Planning and Programming of Facility Construction Projects, installations shall
complete the environmental impact analysis process (EIAP), or have it underway, for each MILCON
project submitted to HQ USAF (via the MAJCOM). AFI 32-7061, The Environmental Impact Analysis
Process describes the tasks and procedures for successfully conducting the AF EIAP. AF Form
813, Request for Environmental Impact Analysis, must be completed and submitted to the Civil
Engineer Squadron Environmental Office at each installation after the submission of AF Form 332.
The PM should review the 813 to be certain that any unusual items (for example, a facility located
within a floodplain) have been included in the project costs. The disposal of all waste materials and
storm water shall be in compliance with local codes and Environmental Protection Agency (EPA)
requirements. When specifying products that are included in the EPA’s list of affirmative
procurement Guideline items, A/Es must include the requirements for these products to meet or
exceed the recycled material content standards established by the EPA.
Safe provisions shall be incorporated for the storage and handling of hazardous materials and spill
prevention precautions shall be provided. Refer to AF Engineering Technical Letters, local codes,
and base environmental policies regarding storm and waste water disposal.
To stay on top of the permit application process, review at key check points during project design as
follows:
1. CCD Preparation: The MAJCOM Programmer and AF DM/CM (when applicable)
review project design expectations, including known and potential permits required for
the project. The CCD should identify all required permits. Hazardous materials
abatement should be discussed for all addition/alteration projects or when demolition
is required.
2. Project Definition Preliminary Submittal (10%): The A-E and Design Agent
provide completed permit applications with appropriate filing fee application checks to
the AF DM/CM for review before submittal to the Base. The Base will submit permit
applications to the proper authorities.
3. Ready to Advertise (RTA): AF/A7CP will not grant authority to advertise a project
unless the EIAP has been completed and entered into the appropriate screens in
ACES-PM. The BCE also should obtain all environmental permits or have
reasonable assurances from the respective regulators of obtaining the permits prior to
project award. AF/A7CP will review ACES to ensure the environmental construction
requirements have been met and that the contact information for the various
managers has been entered on the Managers tab.
2-7
MILCON PROGRAM DEVELOPMENT
Although the following discussion primarily relates to an OSD and Air Staff Program Manager’s
responsibilities, it is important for the PM to be aware of the overall MILCON review and funding
process.
2-7.1
Air Staff and OSD Actions
AF/A7CP, in conjunction with other HQ USAF functional offices, reviews project requirements in
detail and validates the needs, engineering feasibility, economic benefits, compliance with Air Force
objectives, and project costs. In accordance with current corporate Air Force objectives and
guidance, the validated projects are prioritized and a consolidated Air Force list is developed. Based
on the total funding committed to MILCON in the Program Objective Memorandum (POM), the
prioritized list is formulated into the MILCON portion of the Air Force Budget Estimate Submission
(BES). (In addition, AF/A7CP notifies the MAJCOMs and FOA, and authorizes the initiation of the
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design of validated projects. Congressional notification per 10 U.S.C. 2807 may be required prior to
award of an Architect-Engineer (A-E) contract.) The MILCON BES submittal to OSD consists of the
front pages of the DD Forms 1391 for all projects included in the program. The following actions
take place after the BES has been submitted:
2-7.2
•
OSD reviews each project in detail to see if the documentation is complete and that
projects are well justified and in compliance with the latest OSD planning and
programming guidance. OSD then issues draft Program Budget Decisions (PBDs)
that transmit their proposed actions (delete, re-price, defer to a future year) on certain
projects.
•
After receipt of the draft PBD, the Air Force has an opportunity to appeal the
proposed action by filing a written reclama. OSD actions on these reclamas (along
with high-level negotiations) determine the final size and content of the MILCON
program.
•
OSD submits the adjusted BES to the President through the Office of Management
and Budget (OMB). After receiving the approval of OMB and the President, the
President’s Budget (PB) is submitted to Congress.
•
Congressional committees responsible for authorization and appropriation of
MILCON requirements hold hearings attended by witnesses from each service. These
hearings, along with detailed reviews of the MILCON requests, result in a report
detailing the committee’s recommendations. Committee differences are resolved in
conference, and legislation is drafted that authorizes and appropriates the MILCON
program in line-item detail.
•
In addition to providing approval, disapproval, and revisions to the individual projects
contained in the Air Force MILCON budget request, Congress often adds projects to
the program (known as Congressional Inserts (CI)). These added projects, also lineitem specific, become part of the authorized and appropriated MILCON program for
the fiscal year. To help ensure that the projects added by Congress are valid
requirements, the OSD Comptroller requires each service to prepare a project listing
for all the FYDP years. Congress is encouraged to not add any projects that are not
included on the FYDP list (known as the McCain Act), which is updated each year
and submitted to OSD along with the BES.
Milestones of Typical Submissions
The Air Force submits a biennial (2 fiscal years) budget (which includes MILCON) to OSD. OSD
submits the budget to Congress every even-numbered fiscal year. OSD reviews both years in detail
and issues decisions on each. However, Congress does not review the second year’s program, and
it is resubmitted by the Air Force to OSD the next year as an amended program. After OSD reviews
and approves the amended program, it is submitted to Congress for its review. The following
section presents the key milestones of a typical submittal of MILCON programming documentation.
Note: Fiscal Year (FY) represents the FY for which the MILCON project is programmed; FY-3, FY-2,
and FY-1 represent three, two, and one year before the FY, respectively; and FY+1 indicates one
year after the FY.
2-7.2.1
FY-3
•
Early in 2nd Quarter, installations submit the FY and the FY+1 documentation to the
MAJCOMs.
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•
2-7.2.2
2-7.2.3
2-7.3
MAJCOMs develop a prioritized list of MILCON requirements for both fiscal years and
finalize the project documentation for submittal to Air Staff.
FY-2
•
MAJCOMs submit initial documentation to the Air Staff in the 1st Quarter. (Normally,
final submittals for the FY projects are in November and initial submittals for FY+1
projects are in December.)
•
The Air Staff reviews the submittals and hosts MAJCOM briefings for project
validation in the 2nd Quarter.
•
After project validation, a prioritized list of Air Force construction projects is developed
for each FY through an established corporate review process.
•
During the Fourth Quarter, AF/A7CP conducts an investment budget review with
SAF/ FMBI. Changes resulting from this review are made to the program, and it is
submitted to Air Force senior leadership for final approval. The approved program
becomes the MILCON portion of the BES.
FY-1
•
The Air Staff submits the BES to OSD.
•
OSD conducts a detailed review of the BES and issues PBDs, which contain
proposed actions on the projects (approval, deferral to a later year, deletion from the
program, price adjustment). After Air Force review, final PBDs are issued.
•
The Air Force adjusts the biennial program according to directions contained in the
final PBDs. The adjusted program becomes the Air Force MILCON portion of the PB,
which is forwarded to Congress for review, authorization, and appropriation.
Approval Authority
As described above, the approval authority for MILCON projects rests with Congress. Re-approval
authority for funded MILCON projects in cases where project scope and/or costs have changed are
as indicated in Military Construction Execution Controls Policy and AFI 32-1023. Military
Construction Execution Controls Policy can be found in the most recent Program Management Plan.
2-8
AUTHORIZATIONS
Required authorizations include the DD Form 1391 and Congressional Notification Action in
accordance with Title 10 U.S.C. 2807.
2-8.1
Congressional Review
Every MILCON project is a line item in the Department of Defense (DOD) portion of the President’s
Budget request sent to Congress. The process of line item project approval and funding involves the
review by the House of Representatives’ Armed Services Committee (HASC), the House of
Representatives’ Appropriations Committee (HAC), the Senate’s Armed Services Committee
(SASC), and the Senate’s Appropriations Committee (SAC). The budget request is actually two
requests, one for authorization (HASC and SASC review/approval) and one for appropriation (HAC
and SAC review/approval).
If a MILCON project clears all Congressional committees (commonly referred to as “marked”), it
should be authorized and funded in the final bill. Sometimes requested projects don’t clear all
committees. As a result, the differences between the House and the Senate appropriations or
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authorizations conference committees normally are negotiated before forwarding to the respective
full bodies for a vote. It is during these negotiating sessions that projects which only cleared one of
the committees may yet be added to the bill. Upon passage of the authorization and appropriation
bills and the signature of the President, the MILCON projects can be awarded.
Typically, each bill authorizes a MILCON project for a period of three years and appropriates the
funds for five years, both beginning from the start of the fiscal year or the signing of the bills if later.
If the construction funds for a project are not obligated by the end of the three-year period, it is
possible to request and receive an authorization extension from Congress when the situation
warrants the extension. Authorization extensions are usually granted in one-year increments.
Unobligated project funds normally expire at the end of five years and are held in an expired funds
account at SAF/FMBIC for another five years. The expired funds are used to pay claims on
financially closed projects and to make within-scope changes on the work of the original contract.
The funds remaining in the expired funds account are withdrawn by the Department of the Treasury
at the beginning of the tenth year and placed into a cancelled funds account available for use by
other Federal agencies to pay claims.
The A7CP rule of thumb is to use all “old” money first and minimize the amount of funds that
expire and can’t be used on a project.
2-8.2
Notification Action (A/E Fees Greater than $1,000,000)
When the cost of A-E design services for a project, or a group of related projects is estimated to
exceed $1,000,000 Congress must be notified in accordance with Title 10 U.S.C. 2807 to allow
comment on the proposed action before publishing the Federal Business Opportunities synopsis.
AF/A7CP will initiate this Congressional notification in the August-September timeframe and will
notify the MAJCOM and FOA when DOD submits the notification package to Congress. Staffing
actions for “2807 notification” typically take 30-45 days. The Federal Business Opportunities
synopsis can be published once AF/A7CP has issued a Design Instruction in ACES-PM stating that
the notification action is complete.
It is the AF DM/CM’s responsibility to check the appropriate screen in ACES-PM and follow up at the
end of the 30-45 day period if AF/A7CP has not issued a DI. Until the notification process is
completed, the A-E contract cannot be awarded and a delivery order for an existing Indefinite
Delivery Indefinite Quantity (IDIQ) A-E contract cannot be processed. The AF DM/CM must ensure
that time for this process is included in the A-E Selection Schedule. The notification required by Title
10 U.S.C. 2807 does not apply to IDIQ contracts, but does apply to individual A-E delivery orders on
the contract.
AF/A7CP may restrict the level of design if the expected design fees will exceed $1,000,000
(requiring Title 10 U.S.C. 2807 notification to Congress), or because of unusual circumstances. If
the project is included in the AF POM and the design notification complete, AF/A7CP typically
authorizes MAJCOMs to design the project to the Ready to Advertise (RTA) milestone. Once PMs
receive the Air Staff DI, the AF DM/CM issues a DI to the design/construction agent (most
frequently the U.S. Army Corps of Engineers (USACE), Naval Facilities Engineering Command
(NAVFAC, AFCEE or AF Waterbeach (UK only).
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CHAPTER 3 - DESIGN
The highlighted section of the MILCON Process Diagram below shows the Design activities
detailed in Chapter 3
3-1
DESIGN DIRECTIVES
Below are the different types of MILCON design directives that will be issued throughout the design
and construction process:
3-1.1
Air Staff Design Instruction (DI)
AF/A7CP requires the AF DM/CM to enter design data into ACES-PM to include design method
(usually IFB-Invitation for Bid or DBD - Design Build Contract) and design funds required before
the initial DI is issued. An AF/A7CP DI ( sometimes referred to as a Planning Instruction or PI)
issued via ACES-PM changes the project from programming status to design status, and, barring
any need for “2807 notification” to the Congress, authorizes the AF DM/CM to initiate design for a
conventional design-bid-build project or to initiate preparation of the RFP for a design-build project,
at the AF DM/CM’s discretion subject to limitations stated in the DI and coordination with the
installation, Agent and MAJCOM. The AF DM/CM has 30 days after the issuance of the Air Staff
DI to issue the DI to the design agent.
During the design process AF/A7CP can issue subsequent DIs to the AF DM/CM. These DIs
inform the AF DM/CM when the “2807 notification” is complete; identify changes in project
status, scope, programmed amount; grant Authority to Advertise and Authority to Award; and
identify other actions that affect the project.
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3-1.2
AF DM/CM Design Instruction (DI)
AF DM/CM Issues DIs (also referred to as Field DIs) to the DA as the AF/A7CP DIs are received.
For either design-build or conventional design-bid-build projects, the AF DM/CM must promptly
issue DI authorizing the DA to proceed with RFP preparation or design. The initial AF DM/CM DI
to the DA is the authority to start design actions such as A-E selection and award, site
investigation, and design or RFP preparation. The authorization includes as a minimum the project
title, program, the “design to” authority, programmed amount, and scope. Follow-on AF DM/CM
DIs should include only the changes and updates to the initial AF DM/CM DI. The AF DM/CM
should provide copies of all AF DM/CM generated DIs and their attachments, as necessary, to all
appropriate organizations; information copies should go to the MAJCOM programmer, installation
PM, and AF/A7CP.
Note: See Section 3-5, Design Development for a discussion of ACES-PM milestones for
design-build projects.
The AF DM/CM issues the authority to proceed with design at the following stages, based on
project validation and required milestones for Congressional approval:
3-1.3
•
Selection of A-E (2%). Includes A-E negotiations, and all other associated
activities up to, but excluding, award of RFP or design contract.
•
Notice to Proceed (3%). Directs the A-E under contract or Design Agent in-house
staff to initiate RFP preparation or design.
Authority to Advertise Construction
The AF DM/CM updates the Milestones in ACES-PM and notifies AF/A7CP via email when a
project is Ready to Advertise (RTA). AF/A7CP in-turn grants authority to advertise (ATA) by
issuing a Design Instruction (DI) to the AF DM/CM via ACES-PM. This DI signals the AF DM/CM,
MAJCOM, Base Civil Engineer (BCE) and User that the project has been included in the
authorization and appropriation bills signed by the President. AF/A7CP will grant authority to
advertise for a project if all of the following criteria are satisfied:
•
Project included in the authorization and appropriation bills signed by the President;
•
Project at least 95% designed as reported in ACES-PM;
•
Basic CWE/PA ratio is not greater than 110%;
•
Overall AFCEE fiscal year MILCON program CWE/PA ratio does not exceed 100%;
and
•
EIAP is completed and reported in ACES-PM.
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Once ACES-PM is updated for their project, the AF DM/CM will send an email to their AF/A7CP
PM to request authority to advertise. The email must contain the following information:
•
•
•
•
•
•
•
•
•
Project Number
Project Title
FY
PA
CWE
CWE/PA ratio
DD1391 scope
Scope as designed
Copy of DD1391
The AF/A7CP PM will issue an Authority to Advertise date (in the Design Instruction menu of the
Air Staff drop down in ACES-PM) when the above information is provided. The AF DM/CM
cannot issue a DI to the Agent authorizing advertisement until this date is provided in ACES-PM.
A project with a basic CWE/PA ratio greater than 110% may not receive authority to advertise if the
AF/A7C funding position does not support the higher cost or the likelihood of exceeding the
construction threshold amount during bidding or construction is too great. In these situations, the
AF DM/CM must pursue cost reduction measures such as project re-design, project scope
reductions within authorized limits, deletion of project requirements, or identification of additive bid
items. AF/A7CP, as a rule, will grant advanced authority to advertise prior to the authorization and
appropriation bills signed by the President if certain criteria are satisfied:
3-1.4
•
Project has passed Congressional review by at least three of the four committees
without adverse language;
•
Project at least 95% designed as reported in ACES-PM;
•
Basic CWE/PA ratio is not greater than 95%; and
•
EIAP is completed and reported in ACES-PM
Authority to Award
ACES-PM Milestones must be updated to show: Actual Advertise Date and Actual Bid Opening
Date. Construction funds for most MILCON projects are transferred to the Agent after bid opening.
The AF DM/CM notifies AF/A7CP of the proposed award CWE via email and ACES-PM. If the
award CWE does not exceed the PA, AF/A7CP issues a DI via ACES-PM to the AF DM/CM
granting authority to award the contract and requests that SAF/FMBIC send funding equal to the
award CWE to the Agent. At this time the AF DM/CM will send the Agent a DI authorizing award
and update ACES-PM Milestones to show the Actual Award Date when the contract is awarded.
In accordance with Title 10 United States Code (U.S.C.) Section 2853, Authorized Cost and Scope
of Work Variations, if the award CWE is greater than the PA but within the authorization threshold,
the AF DM/CM must identify available funding source(s) for the difference between the award CWE
and the PA. If the award CWE exceeds the PA by 25% or $2.0 million, whichever is less, the AF
cannot award the contract and the project must be redesigned, re-bid, or reprogrammed.
Additionally, if the bid CWE is less than 75% of the PA or the award scope is less than 75% of the
DD1391 scope, Congressional Notification is required before the project is awarded. See the
latest AF Program Management Plan for a detailed discussion on approval levels for cost and
scope variations that approach Air Staff and/or Congressional thresholds.
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Once ACES-PM is updated for their project, the AF DM/CM will send an email to their
AF/A7CP PM to request authority to award. The email must contain the following information:
•
•
•
•
•
•
Project Number
Project Title
FY
CWE/PA ratio
Low Bid CWE
Copy of bid report
The AF/A7CP PM will issue an Authority to Award date (in the Design Instruction menu of the
Air Staff drop down) in ACES-PM when the above information is provided. The AF DM/CM
cannot issue a DI to the Agent authorizing contract award until this date is provided in ACESPM.
3-2
PROJECT MANAGEMENT
3-2.1
Project Management Plan
Key to successful project management and execution is to establish a Project Management Plan
(PMP) at the outset of the project design process. In the PMP the AF DM/CM should sketch a
project team organization chart and set the rules to be followed for communication for the project,
from design through contracting, construction and closeout. The PMP should include information
about who calls whom, who gets copied on information, how many copies of which A-E submittals
go to whom, and so forth. Make sure that everyone understands each other’s roles and
responsibilities.
3-2.2
Acquisition Strategy
Contracting is a Design and Construction Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
However, before design starts, the AF DM/CM should decide the appropriate project delivery
(business) strategy in conjunction with the MILCON Program Manager, Design Agent, the
customer and base civil engineering staff. To establish a strategy, the AF DM/CM must decide,
with the Design Agent’s recommendations, on the appropriate delivery method. Selection of the
delivery method and contract type set the framework for determining the appropriate project
acquisition strategy. Refer to Appendix B, Construction Contract Types for additional information
to assist the decision making process. The acquisition strategy should also address the selection
of a qualified architect-engineer. Refer to Section 3-4, A-E Service Acquisition for details.
3-2.3
Delivery Methods
The booklet, Selecting Project Delivery Systems, published by the Project Delivery Institute
compares Traditional Design Bid Build (DBB) with Design Build (DB). In summary, the booklet
shows that on average, unit costs are about 6% lower for DB versus DBB, DB projects are
constructed about 12% faster than DBB, and DB projects are delivered approximately 33%
faster than DBB. Additionally, DB projects have about 5% less cost growth and about 11% less
schedule growth than traditional DBB projects. In terms of quality, DB has been shown to
consistently provide better performance in these areas of concern: ease of startup, lack of call
backs, low operation and maintenance cost, quality of envelope (roof, structure, and foundation),
quality of interior space and layout and quality of process equipment and layout.
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Whether a variation of DB or DBB is selected as the appropriate delivery method for a project, the
Air Force assumes considerable up-front responsibility in the development of project requirements.
In the case of DBB, the AF is assuring the constructor that the drawings and specifications that are
provided are complete and error free. In the case of DB, the AF must carefully prepare
performance specifications and any required drawings as a part of the request for proposal (RFP).
The quality of the final constructed product is only as good as the up front preparation of
requirements.
For DBB, the AF assumes all liability (risk) for the completeness and accuracy of the drawings and
specifications. In DB, however, nearly all risk is shifted to the DB contractor who begins a project
with as little as a 10% design; however, the AF assumes risk in writing the performance
specifications. In DB, the AF reviews the design only for compliance with the requirements of the
performance specifications and RFP.
For DBB, the AF warrants to the contractor that the plans and specifications are 100% complete.
The AF is responsible for any errors or omissions that may have been included in these
documents. For DB, however, the DB contractor warrants to the AF that his plans and specs are
complete. The DB contractor owns the details of the design and is liable for errors or omissions.
Ultimately, the decision whether to use DBB or DB requires a change in the level of trust between
the contractor community and the AF. DBB affords a large degree of control of the design to the
AF and is a process that is familiar, Whereas DB requires the AF to relinquish much of that control
and trust that the DB contractor will provide a quality facility on time and in budget.
Note: Refer to the Air Force Design-Build Guidelines for detailed information about the
Design-Build process.
The Air Force is at the forefront of innovative execution methods in the DOD and new methods are
constantly being refined. More information regarding delivery methods may be found in Appendix
C, Common Delivery Methods.
3-2.4
Milestones and Submittals
The design schedule is established by the DA, but the AF DM/CM must ensure the schedule
adequately addresses Air Force requirements. The AF DM/CM must review/confirm the design
schedule with the DA. Track progress closely and obtain justification for any slippage.
Minimize schedule revisions by:
•
•
•
•
•
Providing Air Force requirements in a timely manner.
Communicating with the DA regularly and confirming submittal dates.
Being alert to circumstances that may result in delay. Notify the appropriate office of
any concerns by phone, e-mail, message, or official correspondence.
Verifying that site visits, surveys, and data collection occurred when expected.
Elevating issues to higher levels when reasons for delays are inadequate or do not
match the facts.
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For new MILCON projects, the AF DM/CM is responsible for entering the project milestones
into ACES-PM from the PMP. The Air Staff PMs use these project milestones to manage the
MILCON program, which includes the calculation of the Dirtkicker metrics. Use the drop
down menus on the Project Milestones screen in ACES-PM and at a minimum select and
include the following eleven milestones:
•
•
•
•
•
•
•
•
•
•
•
Design Start
Design Complete
Ready to Advertise
Advertise
Bid Opening
Contract Award
Notice to Proceed
Construction Start
Beneficial Occupancy
Construction Complete
Financial Complete
Use these drop
down menus on
Project Milestone
Screen
The AF DM/CM may add additional milestones from the drop down menus or create their own
milestones as long as they are in addition to the eleven listed above which are required by
AF/A7CC.
3-2.5
Scheduling and Critical Need Dates
Identify any critical need dates associated with the project as soon as possible since these dates’
impact design requirements and the construction schedule. The “critical need date” is the date
established by the AF DM/CM or the user as the last date the facility can be turned over to the
user for occupancy without adverse mission impacts. These dates may be driven by a new or
changed mission, or may be due to the established delivery date of specialized equipment integral
to the facility and/or a critical mission.
3-2.6
Design Agent Schedules
The AF DM/CM should set tentative schedules based upon the MILCON execution goals in the AF
Program Management Plan and request a schedule from the Agent. The Agent should provide the
shortest possible realistic design schedule within 10 days of issuance of the AFCEE DI for initial
input into ACES-PM. The AF DM/CM should revise ACES-PM, as necessary, after acceptance of
the Agent schedule. Review the schedule and compare it with the historical averages. Question
the Agent if significant differences occur. Adjustments may be required to meet Air Force goals.
3-2.7
Construction Phasing
When construction phasing is required, include possible strategies during the design phase for a
design-bid-build project or RFP preparation for a design-build, note cost and schedule impacts,
and discuss possible strategies to be considered by the A-E. Include phasing plans in the
drawings and specifications. Reasons for phasing may include demolition, temporary facilities,
hazardous materials abatement, renovation, critical need date, or other justified requirements.
Complex construction phasing will require at least one coordination meeting specifically addressing
the subject. Ensure the phasing plan is coordinated and completely understood by the Users and
that the milestone dates are included as a construction contract requirement.
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3-3
DESIGN CONSIDERATIONS
Good design must incorporate a variety of different requirements that will have a profound impact
on the development of the project. Primary design considerations include the following:
3-3.1
Environmental Permitting
As part of the project definition charrette, discuss the known environmental issues surrounding the
project with the DA and the A-E. Require the A-E to review current governing environmental
regulations and talk with the Base environmental office to determine all environmental impacts of
the proposed project. Require the A-E to identify all environmental construction permit
requirements as part of the Design Analysis. AF/A7CP policy is that the Environmental Impact
Analysis Process (EIAP) must be initiated (and ideally completed) before a DD Form 1391 is
submitted to AF/A7CP. The optimum situation is that the EIAP is completed before the start of the
project definition phase. Air Force policy is that a project will not be advertised until the EIAP is
complete. Refer to Section 2-6, Environmental Impact Analysis Process for additional information.
3-3.2
Sustainable Development
It is AF policy to incorporate sustainable development by using Leadership in Energy and
Environmental Design (LEED™) criteria as defined by the United States Green Building Council
(USGBC). The Air Force Sustainable Facilities Guide provides tools, suggested guidelines for
selecting candidate projects, and complete AF sustainable development policies. The Whole
Building Design Guide further explains the environmental issues related to building materials and
provides technical guidance on green building material selection and environmental issues.
Sustainable development must be one of the primary objectives in the planning, design,
construction, and operations and maintenance of Air Force facilities and infrastructure. This
means looking for planning, design, and construction solutions that enhance the project’s
environmental performance in addition to its life cycle cost. Make every effort throughout the
facility delivery process to make the project environmentally sustainable. Refer to most recent Air
Force Sustainable Development Policy for further guidance.
3-3.3
Architectural Compatibility
The Air Force has established architectural compatibility Guidelines to reflect the cultural, regional,
architectural, and environmental influences for most Air Force installations. These Guidelines
include architectural style, materials, colors, and landscaping recommendations and should be a
part of the CCD. Refer to the Air Force Architectural Compatibility Design Guide for general
guidance regarding architectural compatibility issues. In addition, many bases also have unique
architectural compatibility guidelines or facilities excellence standards that may influence design.
Consider other related documents such as the USAF Assistance Team Program Handbook,
General Plans (GP) that address pedestrian and vehicular traffic circulation, projected base
growth, consolidation of functions, open areas, and overall land use requirements.
Ensure the A-E reviews the portions of the GP dealing with architectural compatibility before the
start of design. Identify key or cornerstone facilities at the CCD Charrette. Ensure the A-E reviews
this plan, and designs the project in accordance with its goals and objectives. The AF DM/CM
must ensure the A-E understands the Base Architectural Compatibility Guidelines are part of the
design criteria.
3-3.4
Antiterrorism/Force Protection (AT/FP)
The DOD objectives are to reduce personnel exposure to security threats and limit property
damage. The DOD policy and guidance for antiterrorism and the physical security of facilities is
contained in UFC 4-010-01, DOD Minimum Antiterrorism Standards for Buildings and UFC 4-010-
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02, Design (FOUO) DOD Minimum Standoff Distances for Buildings. These requirements are
applicable for new construction, restoration, and modernization of existing facilities. Additional
AT/FP guidance may be found at the following:
•
AFI 10-245, Air Force Antiterrorism (AT) Standards
•
AFI 31-101, The Air Force Installation Security Program (FOUO)
•
AFI 31-203, Security Forces Management Information System (SFMIS)
•
USAF Installation Force Protection Design Guide
•
USAF Entry Control Facilities Design Guide
•
DOD Directive (DODD) 2000.12, DOD Antiterrorism/Force Protection (AT/FP)
Program
•
DOD Instruction (DODI) 2000.14, DOD Combating Terrorism Program Procedures
•
EUCOM Operations Order 03-11 with FRAGO (latest edition) for United States Air
Forces in Europe (USAFE) installations
The AF DM/CM should ensure that base level personnel knowledgeable of special security
requirements are present at the CCD Charrette and project definition charrette to thoroughly
explain the requirements particular to the project, including security issues during construction
3-3.5
Interior Design Policy
In terms of a total integrated facility design, the Air Force considers the functional and visual
aspects of design as essential as the electrical, mechanical, and structural systems. In
accordance with UFC 3-120-10, Design: General Interior Design Requirements interior design is
required on new building construction and renovation projects regardless of funding source or type
of project unless otherwise directed. Reference this document for specific requirements.
The AF DM/CM should ensure what interior design requirements are included in the CCD or as
part of the project requirements. Communicate exceptional requirements to the Design Agent.
The AF DM/CM should also ensure these issues are discussed and resolved with the Base and
MAJCOM (as appropriate) personnel early in the design process. Advise the Design Agent that
interior design requirements should be included in the Federal Business Opportunities Synopsis.
The AF DM/CM should help establish the furnishings budget for the project. Data collecting
conferences between the user and interior designer usually occur during the various design review
conferences. On larger projects and those with controversial or high visibility interest, the AF
DM/CM should attend and serve as the facilitator at such conferences. Small or simple jobs may
not warrant the same attention.
For the interior design effort to be successful, the A-E must have a working knowledge of the
Federal procurement system. A furniture acquisition strategy must be developed early in the
facility design process. Options can include Contractor Furnished/Contractor Installed FF&E
(CFCI), Government Furnished/Government Installed FF&E (GFGI), and Government
Furnished/Contractor Installed FF&E (GFCI).
3-3.6
Accessibility
As a matter of law, new construction, additions, and renovations of existing facilities must be
designed and constructed in compliance with the Architectural Barriers Act (ABA), which requires
that people with disabilities have access to facilities designed, built, or altered with Federal money
or leased by Federal agencies. DOD has not yet issued implementing guidance for the new ADA
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and ABA Accessibility Guidelines published by the U.S. Access Board (Federal Register July 23,
2004 and amended August 5, 2005). Nonetheless, the best practice is to comply with these
guidelines.
All functional areas shall be barrier-free and accessible to the physically handicapped. Site and
building designs should enable physically handicapped persons to act independently and enjoy the
full range of programs provided. Level changes may be included but must be accommodated by
ramps suitable for wheelchair access, both indoors and outdoors. Include access to all areas and
facilities, including staff and work areas, restrooms, water fountains, and pay telephones.
3-3.7
Building Codes
The DOD criteria are based on national standards, private sector consensus standards, and model
codes. Refer to UFC 1-200-01, Design: General Building Requirements for specific guidance. In
the event of conflicts between model codes and DOD criteria, use DOD requirements.
3-3.8
Renderings and Models
The decision to obtain a rendering, model, computer based simulation, or Building Information
Modeling (BIM) must be included in the Statement of Work for a Design-Bid-Build project and the
requirement should be included in the RFP for Design-Build projects. The final color rendering
should accompany the Pre-final Design Submittal (90%) and should clearly illustrate the colors,
textures, and shape of the final design.
In some cases, a scale model is the only way to adequately address all the complexities of a
proposed facility. The A-E should submit an example of the proposed model style at the 10%
submittal for AF DM/CM approval before initiating development of the final model. Make sure the
DA and the A-E understand that all rendering and model originals, photographs, and slides will be
turned over to the AF DM/CM for distribution within the Air Force.
3-4
A-E SERVICE ACQUISITION
A-E Service acquisition is an Agent responsibility. For detailed requirements, see FAR Part 36 and
Architectural Engineer Services with the Air Force. The AF DM/CM should work with the Agent to
review and clarify responsibilities prior to commencement of the A-E selection process. The
purpose of this chapter is to help the Air Force Project Manager (AF PM) through these selection
and contracting steps. While some of the information in this section applies to Operation and
Maintenance (O&M), P-341, Minor Construction, Military Family Housing, Medical, and NonAppropriated Funded (NAF) projects, it is intended to address primarily the Military Construction
(MILCON) program. This section is written from the perspective that the Air Force Project Manager
(AF PM) is the Design Agent (DA) at the FOA. When the AF PM is not the DA, the AF PM’s
responsibilities change (serves as the AF DM/CM). In these situations, the AF PM should work
with the DA to review and clarify the AF PM responsibilities prior to commencement of the A-E
selection process. Refer to Appendix B, - Construction Contract Types for information regarding
the different contracting methods. The AF DM/CM should be a voting member of the selection
committee for single A-E contracts and recommends to the Agent the A-E to be selected from the
IDIQ list.
3-4.1
Architectural-Engineering (A-E) Services
See AFPAM 32-1005, Working in the Engineering Flight for additional information on acquiring A-E
Services.
Design Phase (Title I) services consist of field surveys and investigations to obtain design data
and the preparation of contract plans, specifications, and cost estimates.
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Construction Phase (Title II) services are broadly defined as services provided by A-E firms, inhouse personnel, construction management firms, or other sources during the construction of a
project. Funding for such services depends upon whether these services are provided for the
purpose of completing the design effort or assuring contractor compliance with requirements. See
AFPAM 32-1005 and AFI 32-1023 for additional information on selecting A-E firms.
These services relate to specific construction projects and consist of construction supervision and
inspection of construction. Other A-E Services involve design and construction related services,
but are not connected with a specific construction project. The services consist of developing
design criteria, fact finding studies, surveys, investigations, and the performance of environmental
projects involving prevention, compliance, and restoration when the services of registered
architects or engineers are required. Excluded are services that need not be performed by a
registered engineer or architect, such as providing design and construction equipment or computer
programs.
Describe the specific type of A-E service required, such as planning, design, engineering,
surveying or mapping, or construction phase. The following section addresses types of A-E
services and funding criteria in greater detail.
6% Fee Limitation: Title 10, United States Code, Armed Forces sections 4540 (Army), 7212
(Navy), and 9540 (Air Force) limit that portion of the A-E’s fee for direct design services to 6% of
the estimated cost of the construction project for producing and delivering the designs, plans,
drawings, and specifications needed for a construction project. FAR 15.404-4, Profit and DFARS
236.606-70, Statutory Fee Limitation provide additional guidance. The record of negotiations and
the Government estimate must clearly show that the cost of direct design services does not exceed
the 6% limitation.
Not Considered Direct Design: The following are examples of A-E services that are not
considered an integral part of direct design services for a military construction project and should
be EXCLUDED from the A-E fee when determining compliance with the 6% limitation. These
services, as well as direct design services, should be funded from the planning and design (P-313)
account:
•
•
•
•
•
•
•
•
•
•
•
•
•
Initial site visits
Field, topographic, property, boundary, utility, and right-of-way surveys
Subsurface explorations and borings, soils and materials testing, and resultant
reports
Flow gauging and model testing
Reproduction of design documents for review purposes
Preparation of construction cost estimates
Interior Design services
Preparation of general and feature design memoranda
Models, renderings, computer simulations or photographs of completed designs
Construction-phase services
Preparation or verification of as-built drawings during construction
The services of consultants not specifically applied to the preparation of designs,
plans, drawings, or specifications for a project
Preparation of general and development criteria not specifically related to a military
construction project
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•
•
Management and contract administration of A-E services contracts in connection
with services excluded from the 6% limitation
Document reproduction, travel, and per diem costs in connection with services
excluded from the 6% limitation
The following A-E services are considered “advanced planning” and must be funded from the
operations and maintenance (O&M) account:
•
Developing a master plan for an installation
•
Developing and validating MILCON documentation prior to commencing project
design (such as the CCD Charrette and CCD documentation)
•
Preparing engineering analyses and studies to develop technical design parameters
•
Preparation of as-built drawings of existing facilities prior to subsequent renovation
or alteration projects
•
Preparing environmental impact assessments, statements, and supporting data
•
Management and contract administration of A-E services contracts in connection
with the above services
•
Document reproduction, travel, and per diem costs in connection with the above
services
See Appendix Section A-13, Federal Acquisition Regulations for a list of FAR references pertaining
to A-E contracting.
3-5
DESIGN DEVELOPMENT
The following discussion pertains to traditional design-bid-build projects; however, some
requirements are the same for either design-bid-build or design-build. See Appendix B for an
abbreviated discussion of contract types and Appendix C for common delivery methods. Design
progress submittals are an opportunity to review the A-E’s design products, to check compliance
with criteria, to add or change design criteria, to answer questions, and to discuss design issues
and problems. Identify the User’s needs early in design, not during construction.
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As design progresses, enter the percentage complete in the Design Actual % of the Design Tab in
ACES PM. Note that when the Air Staff enters the DI in ACES-PM, the Design Actual % is
automatically updated to 2%. Determine which submittals are needed for a particular project and
track design completion in ACES-PM during the design process:
•
Air Staff DI issued which permits the AF DM/CM to issue a Field DI to the Agent
and set design parameters (2%).
•
Air Staff DI issued, but Title 10 U.S.C. 2807 notification action required (2%).
•
2807 notification completed, if required, and architect-engineering (A-E) contract
awarded (3%).
•
Project Definition (PD)
o PD Charrette Report submitted (10%)
o PD Charrette Report completed and approved (15%)
•
Early Preliminary Design (if required)
o Early Preliminary Design submitted (30%)
o Early Preliminary Design completed and approved (35%)
•
Preliminary Design (if required)
o Preliminary Design submitted (60%).
o Preliminary Design completed and approved (65%)
•
Pre-Final Design
o Pre-Final Design submitted (90%).
o Pre-Final Design completed and approved (95%)
•
Corrected Final Design Submittal (100%)
Design-build progress must also be tracked in ACES-PM. However, ACES-PM is a tool that was
developed for execution of traditional design-bid-build projects. With design-build, ACES-PM
must be “adapted” to accept information that it was not designed to track. For example, a
Request for Proposal (RFP) at a 15% level of design in a design-build project must be entered in
ACES-PM as 100% designed in order to receive Authority to Advertise (ATA) the Request for
Proposals (RFP) from the Air Staff.
If the design authority is rescinded after the initiation of design, the AF DM/CM must determine
whether it is in the best interest of the Government to complete the design to the next submittal
point or to stop design immediately. The AF DM/CM should work closely with the Air Staff to get
the design authority changed if necessary.
3-6
CONTRACT DOCUMENT DEVELOPMENT
Preparation of contract documents is a Design and Construction Agent (US Army Corps of
Engineers (USACE), Naval Facilities Engineering Command (NAVFAC), AFCEE or AF
Waterbeach (UK only)) responsibility. However, the AF DM/CM should participate in all charrettes
and will be included in the review cycles of the various design submittals.
For a traditional design-bid-build project, the Contract Document Development phase includes
design development and preparation of working drawings and specifications, and culminates with
100% complete design documents that are ready for contracting. For design-build projects, the
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CCD or a separate design (equivalent to a Project Definition) as described below, or lesser levels
of design) is considered 100% design for purposes of developing the Request for Proposal (RFP).
For traditional design-bid-build projects, a project is considered Ready to Advertise (RTA) with
100% design complete documents, completion of the Environmental Impact Analysis Process
(EIAP), and the addition of the contract bid documents. The contract bid documents are provided
by the Contracting Officer with technical assistance from the base architects and engineers. Try to
hold design submittals to the minimum necessary to produce a functionally adequate, technically
sound design.
3-6.1
Charrette (15% Design or Project Definition)
The PD Charrette is critical to the clear and accurate definition of a project and is one of the
most important actions you can take to ensure the project's success. Its development is a
team effort. The definition is an agreement among key participants in a project, and must have
input from all of those participants. Lack of a definition leads to unclear and ambiguous goals,
confusion, misunderstanding, and poor communication. Failure to formalize and document
scope, goals, and expectations puts a project at risk before it even begins.
For Design-Build, the charrette may take place before the RFP is advertised, in which case the
charrette report becomes part of the RFP. If the DB RFP is entirely based on performance
specifications, there may be very minimal or no design at all. In this case, the charrette occurs
very soon after award of the D-B contract. Normally, the same Air Force and DA team members
participate as those attending the RFP development charrette. As with the RFP charrette, senior
installation leadership and approvers will be briefed at the beginning, as design progresses, and at
the conclusion of the charrette sessions. Since the project is now entering a phase that will result
in design and engineering solutions, the A-E must add team members to complete the design
including structural and civil engineers, landscape architects, interior designers, and mechanical,
electrical, and plumbing engineers as well as a cost estimator and a facilitator. The team (AF
DM/CM, Base/User, Agent and A-E) should validate the RFP charrette documentation. This can
be accomplished in a pre-charrette meeting or during the Charrette in the data gathering phase.
Charrette Objective: The objective of the charrette is to reach consensus on the schematic
design. The approved solution becomes the basis for preparation of construction documents
during the Contract Document Development phase. The effort involves intensive work sessions
with a collaborative team of Users and design specialists.
Who is Involved: Using Agency Commander and appropriate staff, BCE and Staff should be
scheduled in advance of the charrette. Base management involvement is essential to assure user
involvement and participation in the charrette process. User and base involvement is critical to
develop a solid direction for the design.
The Design Team: The services of a trained professional facilitator should be considered to guide
the charrette. As a minimum, the following should be involved in the Charrette:
•
•
•
•
•
DA’s project manager
User’s representatives
MAJCOM representative
A-E team (engineers, architects, cost estimator)
Facilitator (may be part of A-E team or under separate contract)
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•
•
•
•
•
•
•
•
•
•
•
•
BCE and, depending on the project scope or complexity, other Base support
representatives
AF Project manager
BCE project programmer
BCE community planner
BCE Fire department representative
BCE Environmental flight representative
Bio-environmental representative
Communication squadron representative
Security forces squadron representative
Safety officers
Wing ATFP representative
Readiness flight representative
In overseas and high-threat areas the BCE Readiness Flight can address CBRNE/FSTR
(Chemical, Biological, Radiological, Nuclear, and high-yield Explosive/Full-Spectrum Threat
Response) concerns and provide input to the team on these areas. It is important to design
Collective Protection Systems into applicable facilities.
The Agenda: Review the agenda/schedule with the Agent before the charrette. The agenda
should be segmented into about two-hour slots. All participants need not attend every session but
must be available when their interests are addressed. Total team working sessions should be
specifically scheduled to bring the team together at least daily. The core team should be present
through all sessions. A kickoff session, numerous review sessions and a wrap-up session with the
team and user are essential.
The Results: The Charrette Report document contains much of the same material as a CCD, but
typically in greater detail.
3-6.1.1
Inputs of the Charrette
The following items are major topics that may need to be addressed at the conference, although
not every topic is applicable for every project:
•
CCD (if available).
•
Updated Project Management Plan, to include a Team Directory - Review and
establish a current team directory. Include functional title, address, telephone and
fax numbers, and e-mail address for each member.
•
General Plan and Design Guidelines - Give the A-E all available criteria documents
such as installation standards, architectural compatibility Guidelines, GP component
plans and reference drawings, and Assistance Team (AT) studies.
•
Environmental Concerns - Create or mark-up an environmental permitting checklist.
Explain to the A-E what is known and not yet known about environmental issues for
the project. Identify the points of contact for Base environmental issues.
•
Utility Drawings and As-Builts - Give the A-E all pertinent Base site and utility plans
and as-builts for existing facilities that will be affected by the new project.
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3-6.2
•
Approval Process - Document the decision making and approval processes for the
various project issues - budget, scope, function, aesthetics, etc.
•
Budget Assumptions - Give the A-E all back-up data that supports the DD Form
1391 budget and identify the Construction Cost Limit (CCL).
•
Special Design Considerations - Give the A-E any special design considerations for
the project that may not be fully explained in the CCD or other documentation.
These may include EMP/TEMPEST shielding, heat recovery, standby power,
special environmental requirements, ATFP and Collective Protection requirements,
etc.
Early Preliminary Design Submittal (30% Design)
The Early Preliminary Design submittal is important for most MILCON projects as it allows the AF
DM/CM, Base, DA, and User to review the A-E’s design intentions and to confirm that the A-E
understands all project requirements. This is the best point in the Contract Document development
phase to check on design development efforts, make corrections to the design development
documents, and incorporate project criteria changes. Incorporating changes later in the design
process will be more costly and cause delays. The AF DM/CM should ensure that all team
members in the design process thoroughly review the submittal products to ensure the A-E is
proceeding in the right direction. Typical Early Preliminary Design submittals include items such
as:
•
An updated parametric cost estimate.
•
Any changes necessary to comply with the charrette report review comments.
•
Further developed site plans, floor plans, elevations, building sections, and wall
sections.
•
Design narrative and analysis including code analysis by all disciplines (civil,
architectural, structural mechanical, plumbing, power and lighting, communications,
fire detection/protection, life safety etc)
•
Single line schematic drawings for mechanical, electrical, communications, etc.
•
Comprehensive Interior Design (CID) plans if authorized.
•
Color boards.
•
Preliminary furniture footprints.
•
Environmental permitting and Sustainable development requirements.
•
A listing of the proposed specifications for the project.
•
Value engineering considerations.
•
Check status of any required waivers or exemptions (DDESB, design criteria, etc).
Upon acceptance of the early preliminary design submittal the Air Force PM reports 35% design
completion in ACES-PM. Enter the percentage complete in the Design Actual % of the Design Tab.
3-6.3
Preliminary Design Submittal (60% Design)
At this stage, all basic design decisions should have been made, and design development is in full
progress. Formal submittals are usually not required for most projects, and construction document
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reviews are typically conducted through on-board meetings in the A-E’s office. This allows team
members to provide the necessary design oversight without stopping design. Formal Preliminary
Design submittals may be necessary for complex or unique projects and projects with significant
HVAC or industrial operations requirements. Typical Preliminary Design submittals include:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
An updated, detailed cost estimate
Any changes necessary to comply with the Early Preliminary Design review
comments
Complete floor plans with details
Roof plans
Elevations
Building sections
Structural, mechanical, plumbing, communication, and electrical plans with details
CID plans (if required)
Furniture footprints
Color boards and materials
Site and landscaping plans
All the analyses and discussions that were part of the Early Preliminary Design
submittal
Specifications in rough draft
Updated design analysis
Check status of any required waivers or exemptions (DDESB, design criteria, etc)
Equipment layouts with necessary clearances and utility support should also be shown at this
stage of design. Construction specifications for renovation projects should include testing for leadbased paint (LBP) and asbestos-containing material (ACM).
Since government furnished equipment (GFE) installed by the Contractor is covered for installation
warranty only, consider using Contractor-furnished equipment as much as possible unless there is
excess GFE.
Upon acceptance of the preliminary design submittal the Air Force PM reports 65% design
completion in ACES-PM. Enter the percentage complete in the Design Actual % of the Design
Tab.
3-6.4
Pre-Final Design Submittal (90% Design)
The A-E must submit the drawings and specifications as ready-to-advertise (RTA). The Pre-Final
Design submittal includes:
•
•
•
•
•
•
An updated, detailed cost estimate
Any changes necessary to comply with the Preliminary Design review comments
Complete plans and specifications
Final design analysis
Color boards and finishes
Check status of any required waivers or exemptions (DDESB, design criteria, etc)
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Upon acceptance of the final design submittal the Air Force PM reports 95% design completion
in ACES-PM. Enter the percentage complete in the Design Actual % of the Design Tab. Once
the design is 95% complete the AF DM/CM can request Authority to Advertise (ref sec 3-1.3)
from AF/A7CCM IAW the MILCON Execution Controls Policy.
3-6.5
Corrected Final Design Submittal (100% Design)
The Corrected Final Design submittal should include:
•
•
•
•
•
•
An updated, detailed cost estimate
Any changes necessary to comply with the Pre-Final Design review comments
Any corrections to the final design analysis
Color boards and finishes
Cost estimate
Furnishings order forms
Upon acceptance of the final design submittal the Air Force PM reports 100% design completion
in ACES-PM. Enter the percentage complete in the Design Actual % of the Design Tab. Enter
the Design Complete date in the project Milestones.
3-6.6
Ready to Advertise (RTA)
A MILCON project is considered RTA once the following activities are completed:
•
The A-E has submitted the Corrected Final Design documents (working drawings,
specifications, and cost estimate)
•
The Agent has completed a technical and constructability review of the completed
working drawings and specifications
•
If necessary, the A-E has modified the working drawings, specifications, and cost
estimate to comply with concerns identified during the Agent’s technical and
constructability review
•
The Independent Government Estimate (IGE) has been completed by the Agent.
•
The Agent has completed the contract bid package
Enter the Ready to Advertise and Advertise dates in the project Milestones of ACES-PM.
3-6.7
Procedures for “On-Hold” Projects
If a project has been on hold for more than six months, the AF DM/CM needs to weigh the various
factors that affect the review and revalidation approach before completing the design. As a
minimum, these factors include how long the project has been on hold, the technology associated
with the User’s mission, the extent of the development of the project documents, the cost of the
project when placed on hold, changes in User personnel, and changes in Air Force criteria. For
example, the AF DM/CM may want to hold a revalidation or follow-up Charrette and use the latest
submittal documents that were developed before the project was shelved as the basis of the
conference. Regardless of the project, allow more time in the design schedule to revalidate and
complete the design of the “shelved” project than for an on-going design at an equivalent stage.
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The AF DM/CM also should request the Agent to conduct a back-check of any project that has
been 100% design complete or Ready-to-Advertise (RTA) for more than six months. A back-check
is a review to mitigate the modifications that may occur from changes in the user’s mission or
personnel. The back-check should include a complete review by the users, BCE, AFCEE, and
Agent in the area of criteria satisfaction. Also, the AF DM/CM should determine whether a new
cost estimate and further technical or constructability reviews are required.
3-7
CONTRACT DOCUMENT FORMAL REVIEW PROCESS
Upon receipt of a design submittal, the AF DM/CM should promptly notify all reviewing Air Force
organizations, advising them of the date review comments must be submitted to the AF DM/CM for
consolidation. Exercise care in forwarding late comments to avoid delays in the design process,
while ensuring user needs are met. Late comments should be discouraged as much as possible.
Design schedules should allow for Air Force review as follows Project Definition, Early Preliminary
Design, and Preliminary Design submissions: typically 21 calendar days maximum from Air Force
receipt to delivery of Air Force comments to the Agent. Pre-Final Design submissions: typically 15
calendar days maximum from Air Force receipt to delivery of Air Force comments to the Agent.
3-7.1
Review Process Content
The importance of a conscientious early review cannot be overemphasized. The Agent focuses on
the technical aspects of the design. Air Force project reviewers should not be limited to only the
functional aspects (e.g., mission requirements, appearance, and spatial relationships) of the
design, especially if technical concerns affect operations and maintenance. The AF DM/CM
should consolidate all Air Force comments, ensure they are legible and relevant, then forwards to
the Agent.
Conflicts between AF specifications or drawings and the A-E’s specifications or drawings should be
addressed since they have tremendous potential for cost increases and delays during construction.
Only with unforeseen extenuating circumstances should any new requirements or scope changes
be identified after completion of the Project Definition. The AF DM/CM should require the
Commander of the Using Organization to sign any change requests submitted after Project
Definition is complete.
3-7.2
Review Process Transmittal
The AF DM/CM should be the single point of contact between the AF and Agent. Comments
should not be sent to the Agent by Air Force organizations that do not perform the AF DM/CM
function, either directly or by informational copy. Air Force review comments should not be
accepted by the Agent unless the comments are verified by the AF DM/CM. In most cases, the
Agent should hold a meeting where the review comments are consolidated and reviewed with the
A/E. Design review comments are normally entered into the current Agent reporting system. For
more information about the current Agent reporting system, contact your Agent.
3-7.3
Review Process A-E Annotations
Instruct the Agent to provide a copy of the A-E’s annotated Air Force review comments directly to
each of the reviewing organizations. Annotations must identify which comments will be
incorporated into the design, include a brief explanation of rebutted technical comments, and
provide a detailed explanation of rebutted functional comments. Instruct the Agent to provide the
annotated comments within 15 days of receipt of the transmitted A-E review comments responses.
This allows the Air Force adequate time for response prior to the next design milestone.
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3-8
COST CONTROL AND SCOPE CHANGES
It is the AF DM/CM’s responsibility to assure adherence to the PA. Cost control is of great
importance throughout the entire process, especially since the AF DM/CM is the focal point for
most cost control measures for MILCON projects. Project management generally provides
forecasting, effective reporting systems, and a means of control. Refer to the support services for
cost engineering provided by AFCESA.
3-8.1
Cost Control and Scope Changes during Design
Note: Refer to the current AF Program Management Plan for most recent AF/A7C policy
guidance for cost and scope approval authority levels.
Cost estimates during design put price tags on alternative building systems and materials before
construction and predict the fair price for a bid. Cost control success during the design process
hinges directly on the AF DM/CM’s ability to get the appropriate cost information and make
decisions to correct deviations from the approved budget in a timely manner.
When the current working estimate (CWE) exceeds the approved PA, corrective actions may be
necessary. Conservative estimating and excessive contingencies are often reasons for high cost
estimates. The AF DM/CM should discuss cost increases with the Agent to determine the
appropriate course of action. The A-E or Agent develops the estimates and is responsible for
accuracy. Deletion of items from the project should be a last resort. If the A-E’s estimate at
completion of the Project Definition phase is higher than the DD Form 1391’s programmed amount
(PA), determine why the difference occurred. Possible actions include:
•
Redefine the Project Definition requirements and select items that should remain in
the contract documents as bid options or bid additives. If the bid climate is
favorable and bids are within the PA, these items can easily be added back into the
project.
•
Continue the project design with a reduced project scope or reduced requirements
that will fit within the DD Form 1391 programmed amount and identify additive bid
items or bid options.
•
If it appears impossible to design the project within 125% of the programmed
amount, even after reducing the scope by a maximum of 25% of the approved
scope and deleting expensive items, request that AF/A7CP reprogram the project.
Identify potential funding sources from other authorized projects to offset the
additional funding required by the reprogramming request. Reprogramming is a last
resort measure.
The Agent is required to provide recommendations to bring the estimated construction cost of the
project within the construction budget established. The AF DM/CM and the User must approve all
proposed cost reduction measures. The Agent cannot implement these measures unless formally
authorized by the AF DM/CM.
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3-8.2
Value Engineering
As stated in the AFCESA Value Engineering ETL, "Value Engineering (VE) is not a
design/peer review or a cost-cutting exercise. VE is a creative, organized effort, which
analyzes the requirements of a project for the purpose of achieving the essential functions at
the lowest total costs (capital, staffing, energy, maintenance) over the life of the project. Not a
first cost option. Through a group investigation, using experienced, multi-disciplinary teams,
value and economy are improved through the study of alternate design concepts, materials,
and methods without compromising the functional and value objectives of the client.”
The Office of Federal Procurement Policy Act (Title 41 U.S.C. 401, et seq.) as amended in 1996,
requires each executive agency to establish and maintain cost-effective value engineering
procedures and processes. Air Force Policy requires VE for projects with PA greater than $10M.
VE is not required for Design-Build projects or for projects to be LEED™ certified. A value
engineering change proposal (VECP) clause may be included in the solicitation in accordance with
FAR 48.202, Value Engineering; Clause for Construction Contracts for all construction projects
costing >$100K. When the head of the contracting activity determines that the cost of calculating
and tracking collateral savings will exceed the benefits to be derived in a construction contract, the
VE requirement may be waived. Classified projects or projects in a classified area may be
exempted, if the AF DM/CM determines that a study will create an unnecessary security problem.
Although the AF DM/CM may conduct studies with in-house staff or by A-E contract, the AF
DM/CM generally relies upon the Agent to conduct VE studies. The AF DM/CM must identify the
VE requirement in a DI to the Agent and provide the additional funds from the planning and design
(P&D) account. The Agent may use in-house staff or an A-E contract different from the A-E
designing the project.
The intent of a VE study is to review the project design with a set of eyes independent of the
project A-E and to offer alternatives that may produce life-cycle cost savings. Perform VE no later
than the Early Preliminary Design phase for most eligible design-bid-build projects as VE done
later may delay design progress and increase design costs.
DB is inherently a value engineering exercise as the design and constructor work together
through out the life of the project to achieve the budget, quality and schedule. If VE is used for a
DB project, the effort is best spent on the procurement documents (SOW, performance specs,
drawings, RFP). This meets the FAR requirement for VE and these are the key contract
documents and guide the entire design-build project.
All proposed VE recommendations should be reviewed by the User, Base, AF DM/CM, and Agent.
The Base and the AF DM/CM must concur with any VE recommendations regarding maintenance
and aesthetic appearance. The evaluators must be alert to the possibility that VE suggestions may
be contrary to sustainable development goals established for the project. If in doubt, consult the
team’s environmental or sustainable development specialist before approving the suggestion.
Approved VE recommendations should not sacrifice functionality, sustainability, maintenance and
operations, or aesthetic appearance, but should improve the quality of the facility at a lower, or
equal, life cycle cost. The AF DM/CM has the final approval or disapproval of VE items and must
report whether a VE study was required in ACES-PM.
For design-bid-build projects, VE also may be applied after construction contract award. The
proposals come from the contractor, who has the best knowledge of the methods and means at
that location to fabricate the facility. Value engineering change proposals (VECPs) are submitted
to the Construction Agent (CA). These VECPs are reviewed by the User, Base, AF DM/CM, and
the Agent and must be approved by the AF DM/CM and the CA. VECPs need to be accepted
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early enough to incorporate savings without disrupting the schedule. Approved VECPs are
implemented as contract modifications and reported in ACES-PM. Net savings are shared
between the Contractor and the Air Force. See the FAR Part 48, Value Engineering and FAR
52.248, Value Engineering Provisions and Clauses for additional information.
3-9
PERFORMANCE PERIODS AND OCCUPANCY PHASING
If temporary facilities are required, they must be documented and shown as line item costs in the
1391. Occupied sites are a special problem during the design and construction process. A
construction phasing schedule must be developed early during the design process. It
encompasses the user’s needs for continued operation by phasing the contractor’s work, and
keeps the project within the cost limitation. Accomplishing this task early in the design allows the
users to plan “work around” procedures and budget for any extra costs of operation during
construction. The Commander of the Using Organization should review and sign off on the
phasing plan.
Projects with complicated phasing should have a specification section devoted to just phasing. It
should be referenced in the drawings, and address areas to remain in operation, utility service,
move times, site restrictions, etc.
To accommodate a more complicated phasing, building systems may need a special design. Air
conditioning equipment may have to be sized and controlled to accommodate parts of the facility
that must remain in operation while the rest of the facility is altered. A second possible problem
could be the establishment of a critical needs date for completion of all or a part of the facility (e.g.
predetermined equipment delivery or mission bed-down date). Challenge the Design Agent to set
demanding performance periods. Discuss any critical need dates with the A-E and the users, and
then ensure that the construction performance period is sufficient to both accomplish the project
and meet the critical needs dates. This may require construction phasing to allow early occupancy
of certain work areas. Again, these problem areas should be identified early in the planning and
design process, even as early as the CCD. Assure that the 1391 includes line items for temporary
facilities or additional costs to accommodate phasing requirements.
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CHAPTER 4 - CONSTRUCTION CONTRACT
The highlighted section of the MILCON Process Diagram below shows the construction contract
activities detailed in Chapter 4.
4-1
CONTRACT TYPES
Contracting is an Agent (US Army Corps of Engineers (USACE), Naval Facilities Engineering
Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility and the content of this
section is provided for AF DM/CM information only. A wide selection of contract types is available
to the AF and contractors in order to provide needed flexibility in acquiring the large variety and
volume of supplies and services required by agencies. Detailed descriptions of the various types
of contracts are described in FAR Part 16, Types of Contracts. Appendix B, Construction Contract
Types of this document includes abbreviated descriptions for typical contract types.
A Design-Build contract is considerably different than a conventional Design-Bid-Build contract.
The focus of this chapter is on the construction contract award phase of Design-Bid-Build projects.
Detailed information on Design-Build can be found in the AF Design-Build Guide.
Federal Acquisition Regulation FAR Part 15 encourages negotiated acquisitions based on a best
value continuum, and an agency can obtain best value in negotiated acquisitions by using any one
or a combination of source selection approaches. The new approach provides Federal agencies
greater flexibility, and the ability to consider past performance as well as price. FAR Part 15,
Contracting by Negotiation, and the Air Force FAR Supplement (AFFARS) 15 have significant
impacts on the award of Federal construction contracts. Award of construction contracts based on
lowest bid by a responsible contractor is still permissible and may be appropriate under the
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conditions in FAR 6.401, Sealed Bidding and Competitive Proposals. Note: Restrictions to the use
of cost reimbursable contracts exist. See DFARS 216.
4-2
CONTRACT DOCUMENTS
Preparation of Contract Documents is an Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
The content of this section is provided for AF DM/CM information only.
The construction contract contains General Provisions (also called Special Conditions) in Division I
of the specifications, which set forth the procedures and responsibility for implementing the
contract. While the contract drawings and technical specifications identify specific project
requirements, the General Provisions for a project normally include items such as:
•
•
•
•
•
•
•
•
•
•
Work Description
Government Furnished Equipment
Submittals
Construction Sign Requirements
Utility Outages
Availability of Utility Service
General Safety Requirements
Work Hours and Holidays
Disposal Procedures
Final Inspection
During design, the AF DM/CM should review the General Provisions to ensure the contract meets
the unique requirements of the project and doesn’t adversely affect the project. Ensure that a
Critical Path Method (CPM) network will be provided. The network should always be provided in
manageable items. On a single facility, the CPM network should be broken down by subsystem
and smaller than subsystem on multi-facility projects.
Ensure that items such as contractor offices, lay-down and storage areas, contractor parking,
disposal of waste materials, clean up, mowing, environmental protection, and safety provisions are
included when appropriate. Projects in high visibility areas, such as in front of the Wing
Commander’s office, require special attention during construction activities defined as much
cleaner than usual construction practices. Projects near family housing units need childproof
fencing and barricades. Industrial and high tech projects often have special requirements.
Operation and maintenance manuals have to be more than a gathering of each manufacturer’s
specification pamphlets. The manuals must reflect an integrated systems approach. Likewise,
testing operations and acceptance may have unique requirements. These all have to be specified
in the contract.
Temporary Government offices are often included in projects for field personnel during
construction. Ensure adequate facilities are provided at a reasonable cost. Color boards
demonstrate the Contractor’s understanding of the contract requirements; be sure the Contractor is
required to provide timely submittals. Copies of certain submittals (such as fire detection alarm
systems, special finishes, fixtures, etc.) are required for Air Force review, so be sure the Agent has
included the required extra copies in the contract.
Sustainable development must be one of the objectives in the planning, design, construction, and
operations and maintenance of Air Force facilities and infrastructure. This means looking for
planning, design, and construction solutions that enhance the project’s environmental performance
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in addition to its life cycle cost. Make every effort throughout the facility delivery process to make
the project environmentally sustainable. Refer to the current AF Sustainable Development Policy
letter and Section 3-3.2, Sustainable Development for additional information.
If the Contractor is to participate in any management meetings, those particular meetings should
be clearly identified. Joint occupancy should be addressed if required. Any special warranty
requirements such as six-hour response time for refrigeration system malfunctions should be
specified. If the contract includes any unusually long lead items, require a copy of the Contractor’s
procurement schedule.
4-2.1
Liquidated Damages
A liquidated damages (LDs) clause is contained in construction contracts over $500,000 except
where the Contractor cannot control the pace of the work. LDs are optional in contracts under
$500,000 per DFARS 211.5, Liquidated Damages. LDs are intended to establish in advance a fair
compensation to the Air Force for each day the beneficial occupancy is delayed by the Contractor
beyond the scheduled completion date. Make sure the AF DM/CM coordinates with the using
organization to justify the LDs.
Clearly define all added costs to the Air Force in the justification for increasing the amount of LDs.
LDs can be established within the context of the project such as contract phasing or special
operational needs that can only be out of service for limited periods. Define the need(s) for LDs in
the project and seek to determine the expected costs to the Air Force should the Contractor
exceed the performance period. The Agent will identify separately the cost impact to their
operations. Ensure LDs are not set so high, relative to the contract amount, that contractors either
put excess contingencies in their bids, refuse to bid the project, or the LD clause could be viewed
as a “penalty” and thus unenforceable.
4-2.2
Construction Sign Standards
The project construction sign is one of the most visible features on a project site. Be sure it
conforms to Air Force requirements detailed in UFC 3-120-01, Design: Air Force Sign Standard.
4-3
CONSTRUCTION BID PROCESS
The construction bid process is an Agent (US Army Corps of Engineers (USACE), Naval Facilities
Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only) responsibility. The
content of this section is provided for AF DM/CM information only.
Prior to any public notification of the construction project, the Contracting Officer will make a
determination on the level of bidding restrictions to be placed on every construction project. The
determination is made by asking these basic questions:
•
Is the project a candidate for a Small Business Administration (SBA) 8(a) set-aside
solicitation (See FAR Part 19, Small Business Programs), or has the SBA requested
the project for one of their 8(a) contractors?
•
Does the project meet the criteria for an emerging small business (ESB) set-aside in
accordance with FAR Subpart 19.10, Small Business Competitiveness
Demonstration Program?
•
If small business set-asides have been re-instituted by the Contracting Officer, does
the project meet the criteria for a small business set-aside?
•
If none of the above, then the project will be advertised as an unrestricted
solicitation.
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4-4
SOLICITATION PHASE
The contract solicitation process is an Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
The content of this section is provided for AF DM/CM information only.
The Contracting Officer begins solicitation Invitation for Bid (IFB), or Request for Proposal (RFP) by
notifying all prospective offerors with a notice in the Federal Business Opportunities unless
exempted by FAR 5.202. FAR 5.203 requires the notice to be published in advance of the
issuance of the IFB/RFP. To ensure qualified offerors respond to the notice and to help prevent
disputes and potential problems, the Contracting Officer should prepare a detailed/descriptive
Federal Business Opportunities synopsis. The key to a good synopsis is a descriptive scope that
attracts firms with the desired construction and management skills.
During the solicitation period, the Contracting Officer compiles a solicitation package that includes
the project drawings, specifications, special clauses, the current Davis-Bacon wage rates, and the
particulars on the solicitation procedures such as the bid opening/proposal closing date and the
bid/proposal acceptance period. The typical bid/proposal acceptance period is prepared in
accordance with the FAR and Contracting Officer requirements.
4-4.1
Predefinition of Responsibility in Solicitations
Although there are different acquisition procedures, Federal agencies are required to award a
contract to a responsive and responsible contractor. If delivery of the project on time is critical to a
mission, or it is of such a complicated nature that the Contractor must possess unusual skills, the
Agent PM should include specific responsibility criteria in the solicitation to avoid problems, as
required by FAR 9.104, Standards.
Generally, a determination of responsibility includes an assessment of the contractor’s technical,
financial, management, and performance capabilities. If insufficient information is available to
make a determination of responsibility, the Agent PM should request the contracting officer to
conduct a pre-award survey in accordance with FAR 9.106, Pre-Award Surveys. The Federal test
for responsibility is that a prospective contractor must meet the general standards of FAR 9.104-1.
4-4.2
Invitation for Bids and Requests for Proposals
The Contracting Officer normally will issue the solicitation notice to all contractors listed in the
Contracting Officer’s mailing list and to as many “clearinghouses” as possible so as to seek the
widest possible competition for the construction work. The Agent PM has to provide the necessary
justification to the Contracting Officer in order to obtain approval for “other than full and open
competition” contracts (see FAR 6.304, Approval of the Justification).
A public opening is not conducted for RFPs for design-build projects. The offeror expected
to receive the award is not known until completion of the evaluation process and selection of
the best value offeror.
For extremely complex or difficult projects, the time set for receipt of bids or proposals can be
lengthened to improve the competition on the project. Upon the expiration of the bidding period,
the bids are opened and read aloud to all present. At the end of the reading of the bids, an
apparent low bidder is declared. At this point the process of contract award begins.
When required, the solicitation can be amended; however, revisions requested during the
solicitation response period contribute to delay, confused requirements, and ultimately more
expensive or reduced quality projects. If the solicitation package requires changes, the solicitation
response period may have to be adjusted so as to allow at least 10 days between the issuance of
an amendment and the time set for receipt of bids or proposals. If the issuance of an amendment
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will delay the due date for bids or proposals, the Contracting Officer must first request the AF
DM/CMs concurrence prior to its issuance. Have the Contracting Officer provide the AF DM/CM
the reasons and consequences for either issuing or not issuing the amendment. Dependent on the
revisions involved and the timing, it may be advisable to incorporate the change as a “known”
modification rather than delay the due date. In any case, the AF DM/CM must work closely with
the Contracting Officer to avoid any changes to the solicitation, especially those that unnecessarily
delay the bid opening.
4-4.3
Bid Reports
The Contracting Officer usually handles all bidding and contract award activities, and should
provide the bid report within 24 hours. The report includes the names and bid amounts of the first
and second low bidders, including additive items, the high bid with any additives, the Government
estimate, an analysis of the CWE, a note on the funding status, and a recommendation concerning
the low bid and any additives. Refer to Section 3-1.4, Authority to Award.
Upon receiving the bid report, notify AF/A7CP and enter the bid opening information into ACESPM; from the main drop down menus in ACES-PM, select the Bid Opening tab under Execution.
Enter the Bid Details in the appropriate tab and Detailed costs as well. Also assure that the Bid
Opening date is entered in the Milestones. AF/A7CP will not authorize contract award until this
information is entered into ACES.
4-4.4
Protests
Be aware that any interested party whose direct economic interest could be affected by the award
of, or failure to award, a particular contract has the right to protest the award. The party can
protest to:
•
•
The Contracting Officer of the agency doing the contracting, or
The General Accounting Office (GAO).
The protest is generally filed with the Contracting Officer before filing with the GAO. The protest
can be filed before or after award. If filed before, award cannot be made until the matter is resolved
by the Contracting Officer’s decision, except under special conditions. The Contracting Officer
does not have to suspend the contract if the protest was received after award. If the protest is filed
directly with GAO, GAO must notify the Contracting Officer within one day after the protest is filed.
The Contracting Officer must then submit a report to GAO within 25 working days. GAO can take
up to 90 work days after they receive the protest before issuing a recommendation. If the
Contracting Officer elects not to follow GAO’s recommendation to the Contracting Officer, the
rationale must be provided to the Comptroller General within 60 days.
4-5
CONTRACT AWARD
For a design-bid-build project, the award CWE is typically based on the apparent low bid which
includes the basic bid plus any additive or optional bid items to be awarded, management and
contingency reserves, and Agent supervision and administration fees. The bidding documents
must clearly identify the order of acceptance of additive bid items to avoid any perception of
juggling additive bid items to favor a particular contractor. Bid options do not have to be awarded in
the order listed, and for that reason, are most often preferred over additive bid items.
4-5.1
Pre-Positioning Funds
Near the end of the fiscal year, AF/A7CP normally requests that SAF/FMBIC transfer construction
funds to the Agent for MILCON projects scheduled for award by the end of that fiscal year. This is
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known as pre-positioning of construction funds. The amount of funds pre-positioned generally is
equal to the PA but may vary depending upon individual project considerations. Although bids may
be opened any time after the project is included in the authorized and appropriated bills signed by
the President, the Contracting Officer cannot award the contract until the funds are actually
received.
4-5.2
Adverse Bids
Loosely defined, an adverse bid occurs when the contract cannot be awarded to the low bidder
because the resulting award CWE exceeds the Congressional reprogramming threshold or the
CWE is expected to exceed the threshold amount during construction. Adverse bids can be
caused by a number of problems individually or collectively. These include design flaws, overly
restrictive contract requirements, inadequate bidding competition, errors in the Government
estimate, or significant increases in the cost of construction materials. The decision to award a
marginally adverse bid depends on mission need, the Contractor’s reputation, and complexities
and unknowns within the project.
Potential remedies for overcoming adverse bids include re-bidding the existing contract documents
in a more favorable bid climate, revising project bid content through deletion of project scope or
requirements, reducing project bid content through identification of additive bid items, basing award
on negotiated acquisition rather than sealed bids (see FAR 15.102, Oral Presentations), or
reprogramming the project with Congress.
The AF DM/CM must aggressively seek a solution based on the various factors impacting the
project design, such as critical need dates, available funding, bidding climate, and the needs of the
user and Base. The bid or proposal expires at the end of the acceptance period stated in the IFB
or RFP. In addition to seeking the appropriate solution for an adverse bid, the AF DM/CM must
also track progress towards a reaching a decision in order to determine if bid extensions are
appropriate.
4-5.3
Award and the Contract Award Report
The contract award marks the point where the project requirements and ideas discussed during the
planning and design process begin to become a reality through construction. If the Agent
responsibilities are in the same organization, the project management responsibilities are
transferred after award. However, if these responsibilities are in different organizations, transfer is
made prior to solicitation.
The Agent submits the contract award report to the AF DM/CM. The report information should be
entered in ACES-PM within 24 hours after contract award and include the complete funding
summary, award date, number and cost of additive items awarded, award scope including additive
items, and bidding restrictions.
4-5.4
Funding and Authority to Award
Construction funds for most MILCON projects are transferred to the Agent after bid opening. The
AF DM/CM notifies AF/A7CP of the proposed award CWE. If the award CWE does not exceed the
PA, AF/A7CP issues an Air Staff DI via ACES-PM to the AFCEE granting authority to award the
contract and requests that SAF/FMBIC send funding equal to the award CWE to the Agent.
If the award CWE is greater than the PA but within the authorization threshold, the AF DM/CM
must identify available funding source(s) for the difference between the award CWE and the PA. If
the award CWE exceeds the PA by 25% or $2.0 million, whichever is less, the AF DM/CM cannot
award the contract and the project must be redesigned, re-bid, or reprogrammed. Additionally, if
the bid CWE is less than 75% of the PA or the award scope is less than 75% of the DD1391
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scope, Congressional Notification is required before the project is awarded. See Section 3-1.4,
Authority to Award.
Upon receiving a DI from AF/A7CP authorizing award, enter the Contracts information in either
the Execution or Contract Management drop-down in ACES. Also assure that the Actual
Contract Award date is entered in the Milestones. Fill in the fields of the Contract Management
tab, such as the NTP date, authority to award date, basic bid and so on. At this point, the
Construction Agent should have provided a construction schedule. Fill in the estimated or
updated dates for Construction Start and, as a minimum Construction Completion, BOD,
Construction Complete, and Financial Completion.
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CHAPTER 5– CONSTRUCTION
The highlighted section of the MILCON Process Diagram below shows the construction activities
detailed in Chapter 5.
Construction monitoring is an Agent (US Army Corps of Engineers (USACE), Naval Facilities
Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility; however,
the AF DM/CM is responsible for closely monitoring progress throughout the duration of the
construction contract to provide cost control, schedule control, and quality control. Successful
management of cost, schedule, and quality in a manner compatible with user satisfaction is,
indeed, a tough challenge. Meeting this challenge successfully will achieve the objective of
delivering a quality facility meeting the user’s needs, on time, and within budget.
During construction the AF DM/CM must manage details involved with meeting the project goals,
continue to provide information as part of the management team, and must be a key participant in
executing and controlling contract changes.
The AF DM/CM must continue to be closely involved and monitor status during contract award and
construction processes. Working in step with the Agent, AF DM/CMs monitor the project schedule
and budget. Track Construction progress in ACES-PM. Pro-active AF DM/CMs spot problems
early and take action to minimize impacts to cost and schedule. Successful AF DM/CMs must
manage the inevitable project changes due to changes in customer requirements, unforeseen site
conditions, or design errors and omissions.
5-1
CONSTRUCTION STARTUP
The construction phase of the project receives the most attention by the users since they can see
construction progress. Seeing the construction is a potential source for change requests. Just as
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certain contract modifications are absolutely necessary for a successful project and satisfied user,
excessive and unnecessary modifications may adversely impact both the user and the project.
The AF DM/CM must constantly make judgments about potential contract changes and their
impact on schedule, other construction work, funding, phasing requirements, Government
Furnished Equipment (GFE) and Government Furnished Materials (GFM).
The AF DM/CM’s management actions provide cost control, schedule control, and quality
assurance. Successful management of cost, schedule, and quality in a manner compatible with
user satisfaction is, indeed, a tough challenge. Meeting this challenge successfully will achieve the
objective of delivering a quality facility meeting the user’s needs on time and within budget.
For design-build, the start of construction is also the start of design. In ACES-PM, on the
Design tab, upon award of the D-B contract, enter 100% in the Design Actual % field. In the
Milestones, Enter a Design Complete date (actual). These entries along with RTA and
Contract Award dates ‘unlock’ the Contract Management tab so construction progress can be
entered. In the Milestones tab, enter the design and construction progress. ACES will allow
custom text in the Milestone field, so the AF DM/CM can tailor the Milestone statements to the
actual design build phases of work.
5-1.1
Preconstruction Conference
The preconstruction conference is an Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
The content of this section is provided for AF DM/CM information and because the AF DM/CM
should actively participate in the conference.
The Preconstruction Conference (sometimes referred to by the Agent as the Pre-Performance
Conference) is a meeting held at the job site to establish local ground rules, both covered (e.g.,
labor standards clauses) and not covered (e.g., Base regulations) by the contract documents that
are directly related to Contractor actions and interactions on the Base. Attendees should include
the Agent and the AF DM/CM, the Base Civil Engineer (BCE), the User, and the Base Fire
Protection Flight, Environmental Management, Bioenvironmental Engineering, Security Forces,
Wing Safety, and Communications organizations.
The Agent conducts the meeting, but the AF DM/CM should be prepared to address issues such
as phasing, GFE/GFM items, and coordination in restricted areas. Resolve all such issues before
the Preconstruction Conference and present a unified AF position in the Contractor’s presence.
The AF DM/CM’s role at the conference is to ensure that Air Force interests and resources are
protected. The Preconstruction Conference is not the time to discuss potential change requests
unless the changes have a direct impact on user mission, construction startup and contractor
progress.
The most important step to cover to ensure a successful project is “Partnering.” Key
stakeholders should be identified from each of the following groups: the User, the A-E, the
Agent, the AF DM/CM, and the Contractor. These individuals should agree to meet on a regular
basis to identify and resolve problem areas quickly to the satisfaction of the team members. Use
partnering to alleviate problems such as delayed submittals and questions for Air Force entities
and as a tool to keep the project on track.
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5-1.2
Notice to Proceed
The Notice to Proceed (NTP) is the formal instruction from the Contracting Officer to the Contractor
to start work on the project. This notice authorizes the Contractor to spend money and establishes
the start date for the contract performance period. The AF DM/CM should participate in fixing this
date to ensure that the BCE and User are ready for the Contractor to start and that the start date is
consistent with any critical need dates and schedules that are important to project success. Most
Contractors will work with the Contracting Officer and the Base to minimize User disruption. The
Agent will normally issue the NTP between 15 to 30 days after contract award. Minor adjustments
to that time frame can be made if it is in the best interests of the AF. However, excessive delays in
issuing the NTP may result in a Contractor claim unless the intent to delay NTP issuance was
specified in the bid documents. The NTP triggers the start of the period of performance (POP)
which is a critical milestone for schedule management.
The AF DM/CM must enter the NTP date in the Contract Management Tab of ACES-PM.
5-2
SUBMITTALS
The submittal review process is an Agent (US Army Corps of Engineers (USACE), Naval Facilities
Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility; however,
the AF DM/CM may have approval responsibilities.
The construction contract will require the Contractor to submit material and equipment data,
samples, and shop drawings prior to the start of any segment of work related to the items involved.
The AF has a responsibility to provide timely review and prompt return of the submittals to the
contracting officer and hence to the Contractor; otherwise delays and claims may result. Those
items submitted for Air Force approval need special attention because of the number of
organizations that may be involved in the review process. Reviews must be thorough, accurate,
and quick. Submittals such as color boards and O&M manuals are typically reviewed by the AF
DM/CM or the Base.
Late, incorrect, or incomplete submittals from the Contractor can adversely affect the job. Just as
importantly, the Agent’s review process must be timely and responsive to critical items in the
contract schedule. If there is a problem without a timely response, elevate the concern and ask for
help. Be alert to these instances and encourage the Agent at the appropriate management level,
to make the necessary corrections. If the Agent does not make the necessary corrections, elevate
the concern within both the Agent’s management system and the Air Force’s system. This
philosophy and action in working with the Agent is important in all the issues of construction
management. Use partnering techniques to solve problems of this nature before the project is
adversely affected.
For fast-track design-build projects, the using Agency and/or AF DM/CM may request to review
the design packages before construction of each phase begins. The AF DM/CM should include
additional time in proposed schedule included in the RFP and clearly identify the requirement to
review the design packages.
5-3
QUALITY CONTROL AND QUALITY ASSURANCE
Quality control is an Agent (US Army Corps of Engineers (USACE), Naval Facilities Engineering
Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility; however, quality issues
may arise during the progress of construction that requires AF DM/CM involvement.
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The Contractor is responsible for inspecting, testing, and documenting those tests and inspections
that are required by the contract to control material quality and workmanship. The Contractor is
also required by the terms of the contract to employ a Quality Control (QC) representative. The
contract specifications spell out in detail what inspections and tests are to be performed and the
detail of reporting.
The Agent, through the Quality Assurance (QA) program, oversees the Contractor Quality Control
(CQC) program. Quality cannot be “inspected” into the project; rather, the individual instances of
workmanship and overall job quality must be directly related to the Contractor’s reputation and
pride of accomplishment. Although over-inspection can reduce cooperation and result in changes,
ensure the Agent is effective in assuring quality. It is difficult to make corrections for appearancerelated work as the construction nears completion, so bring these issues to the Agent’s attention
immediately.
Encourage the Agent’s QA effort aimed at enhancing the Contractor’s pride in order to receive the
desired project quality. This may include quizzing CQC personnel, frequent meetings with
Contractor’s superintendent or project executive on quality issues, and checking preparatory
inspection work to include CQC. Understanding of CQC enables the AF DM/CM to become aware
of potential issues in a timely manner and encourage the Agent, at the appropriate management
level, to make the necessary corrections.
5-3.1
Construction Inspection
Continuous construction inspection is the responsibility of the Contractor. This responsibility,
established by FAR 52.246-12, Inspection of Construction, requires the Contractor to maintain an
adequate inspection system and perform such inspection to ensure that the work performed
conforms to contract requirements. The Contractor must maintain inspection and test records and
make these available to the Government. The AF reserves the right to inspect and test any phase
of the work at all reasonable times without relieving the Contractor of any responsibility for contract
compliance.
5-3.2
Construction Surveillance
The Agent performs construction surveillance on the job site and at off-site locations (fabrication
locations or stored materials) when necessary. Construction surveillance differs from inspection in
that specific technical inspection and tests are not performed on a continuing basis. Those items
are the responsibility of the Contractor. The AF DM/CM’s job is to review project function and
overall appearance and to raise any cost and time issues that affect the Air Force. Additionally, the
AF DM/CM represents the using agency and BCE’s concerns with functional and technical issues
to the Agent. Do not discuss or provide any comments and suggestions directly to the
Contractor. Instead, document concerns using photos, videos, and notes and discuss
discrepancies with the Agent. Notify the Agent in writing regarding any job site, schedule, cost, or
quality problem areas needing prompt attention and resolution. An AF DM/CM should assure that
the following checklists of construction surveillance items are being performed:
1. Verify appropriate coordination has been effected between the Agent and the Base
Civil Engineer to ensure smooth job progression in areas such as security, utility
outages, etc.
2. Confirm that the Agent’s personnel are familiar with Base Civil Engineer and AF
DM/CM representatives who will be performing surveillance inspections.
3. Confirm the status of actions on AF furnished items.
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4. Check adherence to plans and specifications and take necessary actions to correct
deficiencies. Ensure shop drawings are submitted timely and color boards are sent
to appropriate reviewing offices.
5. Review the approved construction schedule to determine any changes in schedule
or disparity with actual progress. Review the schedule for reasonableness.
Differences of 5% or greater between scheduled/actual progress require detailed
justification to include steps to correct. Also look at any phased construction
scheduling. All indicated slippages in BOD or completion date must be reviewed
with the Agent. Where critical need dates have been established for the total or a
portion of the facility, possible ways of removing slippage should be reviewed with
the resident engineer and higher echelons of the Agent as necessary. Actions will
be coordinated with the using command and their concurrence obtained as required.
6. Review status of change orders and their effect on construction progress and
project funding. Indicate in surveillance reports the status of these change orders
which have been in progress more than 30 days, together with reasons for delays.
Review funds status to ensure proper fiscal management and adequate funding in
the field.
7. Check quality of construction and workmanship and initiate the required appropriate
action.
8. Review the AF Form 1477, Construction Inspection Record, prepared by the BCE,
with individuals responsible. Discuss deficiencies, if any, and problems noted. Note
visit and findings on BCE AF Form 1477 and sign. BCE construction inspection
personnel should be reminded to alert your office of potential or actual problems
immediately.
9. Discuss any claims received or anticipated with the Agent. Review his experience
with “Request for Information” (RFI) including timely response. Discuss any
problems or anticipated difficulties to include any induced by the Air Force.
5-3.3
Quality Indicators
The following items are primary indicators of the quality of the Contractor’s operations. If these
indicators are good, the project is probably in good overall condition. If these indicators are not
good, additional AF DM/CM attention may be warranted. Poor cleanup, for example, often is a
sign of careless supervision.
•
•
•
•
•
Workmanship and craftsmanship
Overall job cleanup and appearance
Daily housekeeping
Hard hat discipline and other safety issues
Material storage procedures
A good project will have an organized appearance during all stages of construction.
5-3.4
Quality Assurance by Agent
The Agent’s Contracting Officer is the AF’s legal contact with the Contractor. The Resident
Construction Manager (RCM) is the Agent’s day-to-day representative in the field. The Agent’s
responsibilities for the project from start of construction to completion include:
•
Acting as single-point-of-contact between the Contractor and the AF
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•
•
•
•
•
Providing Quality Assurance of the work
Reviewing and approving submittals
Maintaining schedules
Administering the contract; modifying the contract when necessary
Protecting the AF’s interests
Expect and require the Agent to maintain good communications with the Contractor’s
superintendent and Quality Control, as this will improve project management effectiveness. Under
the QA/QC system, the Contractor is required to control quality. The Agent has the right and
responsibility, in a QA oversight role, to ensure that the Contractor performs the QC that is required
in the contract. Therefore, the level of quality desired and expected in the completed project must
be accurately reflected in the contract documents. Insist that the Agent ensures that the level of
quality specified is indeed received.
5-4
RESIDENT CONSTRUCTION MANAGER (RCM)
Construction management is provided by the Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)). The AF
DM/CM provides oversight. The Agent RCM’s primary responsibility is to provide on-site project
management for the Air Force, although the RCM also has an oversight management role in
contract compliance. The project management role is an absolute necessity because simply
ensuring contract compliance is rarely adequate for a successful project. Design errors,
unforeseen site conditions, bad weather, mission changes, and User changes are but a few of the
common issues encountered in projects that the RCM is charged with resolving.
5-4.1
Agent RCM Authority
The Agents’ RCM is responsible for the project management activities identified in the Project
Management Plan and described below. The authority includes providing instruction, direction,
and guidance to the project contractor, and answering questions from the Agent PM, User, AF
DM/CM, and BCE, as long as these actions are within the Agent’s authority. Responding to User
change requests must be approved by the AF DM/CM.
5-5
SCHEDULE CONTROL
Schedule Control is an Agent (US Army Corps of Engineers (USACE), Naval Facilities Engineering
Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility; however, it is the AF
DM/CM’s responsibility to help assure the contract remains on schedule. The construction
schedule is prepared by the Contractor, and details how the contract completion date(s) will be
met. Network schedules are used by Air Force Construction Agents on MILCON construction
contracts to schedule work and track progress of the Contractor.
While the Agent must approve reasonable Contractor schedules, the AF DM/CM should question
any schedule that provides for a disproportionate amount of work in the last month or two of the
contract. The schedule is a major construction management tool. Identify in the schedule and
watch very closely those areas that may cause the critical points during the construction or the
construction completion date to slip. Compare the schedule with actual construction progress
because the Contractor should be paid only for the work accomplished. Especially review the
status of pending modifications and their potential effect on the schedule. Finally, question the
Agent on actions taken to meet the schedule when the Contractor falls behind in construction.
Extended overhead can add considerable cost to a project when construction completion is
delayed through no fault of the Contractor.
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The Agent is responsible for review and approval of the schedule. The Air Force can require
changes to the schedule, and does so when mission changes dictate. A network schedule,
properly administered by the Agent, provides an accurate means of measuring the time impact of
potential changes. The AF DM/CM should continually encourage the Agent to obtain an approved
schedule as required by the contract. Changes in the work and time extensions due the Contractor
must be included in the network concurrent with the performance of the change or immediately
after a delay. Otherwise, the critical path network and schedule will not reflect the current status of
work performed or progress attained.
5-6
IN-PROGRESS COST CONTROL
In-progress cost control is an Agent (US Army Corps of Engineers (USACE), Naval Facilities
Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility. The
content of this section is provided for AF DM/CM information only. An important cost control
element deals with keeping informed of changes as the project progresses. Good cost forecasting,
like updating a current working estimate (CWE) during construction, involves knowing costs to
date, project status, and history of changes. This information is essential to determine the cost to
complete, compared with the budget and funds available, so that decisions can made on the
funding overage or shortage. There are three basic reports that the Agent must provide to show
financial history, status, and progress for a project at summary and detail levels. These reports
are: Cost Status, Work-in-Place, and Change and Claim Detail Reports.
5-6.1
Cost Status Report
The Cost Status Report is a conglomerate of information compiled by the Agent and the AF Funds
Manager from the Agent’s Construction Manager’s Report, from the project information contained
in the ACES-PM Civil Engineering Project Management system, and from job site observations.
The goal of the report is not only to reflect the current financial health of the project, but to forecast
the future financial needs as well. Proper cost forecasting should allow the AF Funds Manager
sufficient notice for locating and transferring the needed funds to the Agent before they are actually
required. The results of poor cost forecasting are typically either stop work orders or work deletion
modifications.
The Cost Status Report compares the latest current working estimate (CWE) to finish a project with
the programmed amount (PA), the funded amount and other financial limits such as the
apportioned amount and the threshold. The Report will also include other pertinent financial data
such as contract price, executed modifications, engineering and design (E&D) during construction,
supervision and administration (S&A), available contingency funds, available management reserve
funds, and other associated costs.
The most important inputs to this report, and probably the most difficult to assess, are the
estimated costs for potential changes and undecided claims. The AF DM/CM, along with the
Agent, must observe the interaction between the contract documents, the Contractor, the RCM,
and the Contracting Officer so a price tag may be put on these future costs and included in this
report. The best and most current information is at the job site, so use whatever technique works
to ensure the data is accurate and up-to-date, especially in dealing with the CA’s office above the
RCM level. Not knowing the scope and cost of pending items has caused jobs to stop or needed
work to be deleted because sufficient notice could not be given to the AF Funds Manager to obtain
additional funds or authority. Cost status reports should be revised at least monthly or every time
there’s a change. Stay on top of the following two cost status items, update these items in ACESPM and be able to answer fundamental questions:
•
Current cash position. Is there currently sufficient funding to execute validated
pending modifications?
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•
5-6.2
Forecast to completion. Is there sufficient funding to execute validated pending
modifications and finish the job within available contingencies and management
reserves? If no, seek contingency replenishment on unplaced work by requesting
additional funds. If yes, maintain excess funds until the project has reached nearly
100% completion to ensure unforeseen problems will be funded in a timely manner.
Work-In-Place Report
This payment status report shows the value of work earned and the value projected (either by
dollar value or by percentage of the total contract cost). It is commonly a graphical plot of the
earned and projected values against time and is an indicator of the Contractor’s progress. It is
customary to allow payment for off-site fabrications and for materials that have been invoiced and
set aside in bonded storage. There are two noteworthy observations about the WIP Report:
5-6.3
•
Since WIP is based on dollar-valued (not man-hour-valued) activities, the Contractor
may be behind in the completion schedule because lack of concentration on critical
activities.
•
If the actual WIP exceeds the projected WIP, make sure the payment retainage or
deficiency disallowance, stored materials, and off-site fabrication allowance and
construction progress all make sense when considered together, and that the
Contractor is not being overpaid. Remember, leverage is shifting to the Contractor
as the job progresses, so the AF DM/CM needs to remain continually aware of the
cost to remedy defective work and the potential defects in untested work.
Change and Claim Detail Report
Cost control requires that each change or claim is separately identifiable; otherwise control is lost.
The detail required for forecasting completion cost follows:
•
Summary of validated or confirmed changes organized by number (total, negotiated,
canceled, and un-negotiated), those within 0-60 days and those over 60 days. The
AF DM/CM should focus first on the pending modifications (validated changes not
yet negotiated) that are holding up work or causing a work sequencing problem.
Have a preliminary estimate of the pending changes that don’t yet have Contractor
proposals for cost.
•
Summary of changes by type and value for issued and pending changes.
•
For changes pending, the AF DM/CM should know the cost estimating status for
each proposal and the action needed for each. Assign suspenses.
•
Potential or anticipated change requests must be scoped, validated, designed, and
estimated before the Contracting Officer can negotiate. A pre-validation cost
estimate should be used as part of scoping to develop total cost exposure.
•
To determine the cost exposure for unresolved claims (which have the potential to
become contract modifications), request the Agent provide status detail of each
claim (description, claimed amount, associated performance time, and number of
days since receipt by the Contracting Officer). Stay on top of the Agent to ensure
that claims are resolved within 60 days, that meetings are held quickly so all parties
understand the claim, and that a Government negotiating position is established if
the claim appears to have some merit.
•
The Agent sometimes negotiates modifications without negotiating time and
associated costs. These items are often lumped into a “time extension” modification
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to be negotiated and executed later. Modifications which ignore time should be
considered a “bomb ready to explode,” as the final time and associated cost
settlements are often considerably higher than anticipated. Press the Agent to
negotiate time with each modification or unilaterally add time when appropriate to
force the discussion with the Contractor. Do not let the Agent execute modifications
which invite the Contractor to re-open negotiations on the modification at a later
time.
5-6.4
Value Engineering Change Proposals (VECP)
(See also Section 3-8.2, Value Engineering) VECPs are the Contractor’s suggestions to reduce
construction costs without sacrificing project functional requirements or quality, based on life-cycle
cost analysis. The Contractor and the AF share the savings. See FAR 48.104, Sharing
Arrangements. VECPs are considered Construction Agent Change Requests (CACRs) and must
be approved by the AF DM/CM, Base, and User before they may be executed as modifications.
The AF DM/CM has final approval authority for VECPs. VECPs need careful review to ensure that
design objectives and long term functional requirements are not overlooked in the face of initial
cost savings. Reviews must be completed quickly, because construction continues and savings
opportunities may be overcome by events. Also, Contractors lose interest in submitting VECPs if
the AF cannot act quickly enough to realize legitimate savings opportunities. Value engineering
(VE) is not required for NAF projects.
5-6.5
Requests for Information (RFIs)
Contractor RFIs should be recorded and aggressively tracked and resolved.
5-7
CONTRACT MODIFICATIONS
Preparation of contract modifications is an Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
The Agent should report and request authorization for changes from the AF DM/CM, especially
when the modification affects cost or schedule. The AF DM/CM assures that contingency and
management reserve are adjusted in ACES-PM as contract modifications are executed.
Modifications are negotiated “mini-contracts,” formalized within the context of the original contract.
Modifications allow equitable adjustments to the contract requirements so as to accommodate
differing site conditions, unforeseen conditions, changes in building codes and criteria, correction
of errors and omissions (design deficiencies), VECP delays and impacts to the work, administrative
changes, weather delays, work suspensions, additions, and deletions. Within this list fall the
various Agent changes and Air Force-requested changes. Modifications should not significantly
change the scope of work. If a modification represents a scope increase or decrease of 5% or
more, the project must be examined to gain a clear understanding of why and be carefully
examined and justified. Unfortunately this may cause delay in the construction and therefore
should be avoided.
5-7.1
Types of Changes
Mandatory Field Change: Mandatory changes are changes that must be made to allow the
construction to proceed in a normal manner or to provide a fully functional facility. Mandatory
changes may be generated as a result of differing site conditions, errors or omissions in the plans
and specifications, or directed changes in applicable engineering or medical criteria.
Implementation of Mandatory Changes: Mandatory changes will receive top priority for
implementation. Approval authority for these changes rests with the AF DM/CM. Mandatory
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changes are normally funded from project contingency funds. The AF DM/CM will monitor
contingency funds usage, estimated requirements, and will notify the AF A7CP of any
anticipated requirements in excess of the allocated amount.
Non-Mandatory or User Requested Changes: Non-mandatory changes are generated by changes
in procedures, equipment, or capabilities; or are to improve the maintainability or functional
characteristics of the facility. These are generally changes to the construction contract initiated by
the Air Force. Such changes after award of the construction contract are normally very expensive,
may delay completion of the project and should be held to a minimum. Non-mandatory changes
may provide benefit to the Government, but are optional in nature, i.e.; failure to implement these
changes will not prevent the completion of a fully functional facility.
Implementation of Non-Mandatory Changes:
1. Non-mandatory changes will be managed to avoid exhausting available contingency funds on
non-mandatory changes prior to identification and resolution of all mandatory changes and so that
implementation of non-mandatory changes does not cause unacceptable schedule or cost impacts
to the contract.
2. Non-mandatory changes may be deferred for future consideration if funds are still available
following completion of the basic contract work and all mandatory changes. Deferred changes, if
implemented, may be competitively bid in a separate follow-on contract at the end of the main
contract. Non-mandatory changes may be implemented during the basic contract work if they
cannot reasonably be deferred due to the nature of the work or if earlier implementation is in the
best interest of the Government. The AF DM/CM will maintain a priority list of deferred nonmandatory changes with preliminary cost estimate(s).
3. All requests for non-mandatory changes from Air Force agencies will be processed through
the AF DM/CM. When requested, the AF DM/CM will provide a preliminary cost and impact
estimate for proposed non-mandatory changes.
4. The AF DM/CM will review the proposed change to identify project scope, criteria, schedule,
and cost impacts. If the review determines that the change is out of project or contract scope,
exceeds available funds or that the change should be deferred, the AF DM/CM may submit the
change request for consideration by AF A7CP.
A checklist regarding change requests should include the following items:
1. Does the change fit within the scope of the original project, both as it relates to the
concept of the project and the construction contract?
2. How does the change affect the contractor’s schedule?
3. Does the project have a critical need date, and if so, how is it affected by changes in
the completion schedule, if any?
4. What is or will be the status of project at the time of change?
5. Will the change cause the project CWE to exceed the PA? If an Air Force Change
Request (AFCR) is truly mandatory, it should be approved and funding obtained for
its implementation regardless of whether the CWE exceeds the PA or not.
6. Will the change cause a statutory limit to be exceeded? If so, higher level AF or
congressional approvals and additional funding source will need to be sought.
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5-7.2
Managing Modifications
Modifications are expensive because they are not usually competitively bid. They frequently add
time to the construction schedule. The AF DM/CM should always question the requirement for the
modification and possibly consider a competitive contract as an alternate method of
implementation. The AF DM/CM determines the requirements for Air Force-requested changes
and the Agent designs and executes the modification. Agent changes (changed conditions, design
errors, etc.) must be reviewed and questioned, particularly where time extensions are involved. To
keep on top of the modifications, the AF DM/CM should track status and push for progress at every
possible opportunity. Review the outstanding modifications regularly, including length of time to
execute and those modifications that are negotiated without time limits. Enter information about
contract modifications as they are received in ACES PM under the main drop down for Contract
Management in the Change Orders tab.
One of the AF DM/CM’s more important tasks is to ensure that the User is not left out of the
modification process, especially on Agent changes. The Agent must manage changes by keeping
up with their processing so that the Air Force has sufficient time to line up additional resources or
funding authority, if necessary. Additionally, each modification has the potential to affect the User’s
operational or planned occupancy date. Occasionally, the Air Force may elect to finance an
accelerated delivery to meet fixed occupancy requirements. If the Agent executes modifications
with little or no coordination, the User’s plans may be adversely impacted.
5-7.3
Construction Contract Modification Funding
Contingency funds are provided to the Agent at construction contract award to pay for mandatory
and optional changes not stemming from Air Force changes. Mandatory changes are: those
required for a complete and usable facility when actual conditions found on the construction site
differ from the plans and specifications; those needed to meet changed safety requirements; or
those needed to correct technical errors or omissions in the plans and specifications. Normally 2%
of the contract amount at award is set aside for contingency.
Monitor contract changes and costs in ACES-PM on the Execution drop down menu,
contracts, and modifications. Identify whether funds are contingency or management
reserve. As contingency is consumed, the AF DM/CM requests replenishment from the Air
Staff at 2% of unplaced work, unless directed otherwise.
Optional changes recommended by the Agent are known as Construction Agency Change
Requests (CACRs). These requests result from changes in technology since design completion,
value engineering change proposals (VECPs), and disputed items between the Contractor and
Agent which affect schedule. As with mandatory changes, CACRs are funded from the project’s
contingency fund account, and require AF DM/CM approval.
Management reserve funds also are provided to the Agent at construction contract award for most
projects. These funds are used to support Air Force requested modifications and may be used to
replenish the contingency ’account’ when required. As previously discussed, these modifications
may be generated by the User, the BCE, or higher levels for improving the operations and
maintenance of the facility and its systems or when revised operational missions impact the
facility’s functional use. Normally 3% of the contract amount at award is set aside for the Air Force
management reserve (AFMR) account as long as the CWE is less than the PA. The Agent may
use management reserves only with AF DM/CM approval.
The project CWE during construction is the summation of the original contract amount, executed
modifications, SIOH, E&D, the contingency account, estimated costs for pending modifications,
and other construction costs such as follow-on contracts. Thus, each contract modification may
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cause an increase to the CWE. Although the Agent tracks construction costs by contract and is
required to report these values to the AF DM/CM in the form of a CWE, the AF DM/CM must
continually obtain project financial status information from the Agent in order to reflect an accurate
cost to finish the project.
When the Agent’s contingency account has been exhausted and pending modifications dictate the
need for additional funds, the AFMR account must be used to fund those modifications. When
both the AFMR and the contingency accounts have been depleted, the AF DM/CM may request
the replenishment of the accounts. The AF Funds Manager will determine if management reserve
and/or contingency accounts will be replenished. The contingency account is replenished to a
level equivalent to 2% of the unplaced construction work, plus the pending modifications.
5-7.4
PA Threshold Limits
Per MILCON execution controls policy; if the total cost of all contract modifications cause the CWE
to exceed the PA by more than 125% or $2 million, (whichever is less), the project will require
Congressional Cost Variation Reprogramming. Refer to the latest Air Force MILCON Program
Management Plan.(PgMP) for details on approval authorities and procedures when the CWE
approaches PA thresholds. The AF DM/CM must stay on top of the costs of the project and
encourage the Agent to submit information in sufficient time to request funds in accordance with
current policy, especially when cost variation or reprogramming actions are required. In all cases,
have the Agent submit a funds request in writing to the AF DM/CM.
5-8
SPECIAL INTEREST CONSTRUCTION PROGRAM
Execution of special interest construction programs, for example tri-service facilities, new mission
bed downs or highly complex/technical MILCON, are primarily an Agent (US Army Corps of
Engineers (USACE), Naval Facilities Engineering Command (NAVFAC), AFCEE or AF
Waterbeach (UK only)) responsibility and requires close AF DM/CM involvement. Special interest
programs require more intense management and senior leadership involvement, therefore, the AF
DM/CM should assure that the following items are also considered in the PMP:
5-8.1
Management Meetings
The number of interested organizations makes it necessary to have a means of providing everyone
with project status information on a continuing basis. Coordination meetings are an important tool
for managing the project, controlling costs, resolving current problems, and identifying potential
problems. Weekly, monthly, and quarterly are the meeting frequencies that are generally
recommended. The primary purposes of these meetings are indicated in the following:
Weekly Meetings – Primarily for information, problem solving, and decision making within authority
provided to discuss the following:
•
•
•
•
•
•
Current problems.
Status of modifications and change requests.
Quality assurance and quality control.
Schedules and progress.
Other pending actions.
Funding status and issues.
Monthly Meetings – Meeting between key organizations listed in the Project Management Plan to
discuss the following:
•
Project status.
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•
•
Funding status.
Issues requiring resolution above the authority provided to the weekly working
group.
The Contractor might be invited to discuss progress achieved during the last 30 days and plans for
the next 30 days. Contractors should not be present for government-only deliberations and
discussions.
Quarterly Meetings – For project reviews by Commanders and Executives of the AF DM/CM, BCE,
and User organizations, attendees should be limited to executives and those principals directly
involved with the project. Purpose is to inform Executives and Commanders of project status and
get resolution of issues for which there was insufficient authority at the lower levels.
The RCM or the parent Agent should prepare and distribute the minutes of the monthly and
quarterly meetings for coordination. The minutes should be distributed within five days. The
monthly meeting minutes will constitute a record of project status and actions taken.
5-8.2
Quality Assurance Plan (QAP)
At Air Force request the Agent prepares a QAP in conjunction with the Contractor’s Quality Control
Plan in addition to the Contractor’s standard quality control plan. The following list indicates the
salient features of the QAP:
5-8.3
•
Inspection Assignments: The QAP should spell out the responsibilities of each
Government agency inspecting the job.
•
Contractor Inspections: The QAP should cover the responsibilities of the
Contractor’s quality assurance inspection team (if applicable), as well as how and
when inspection will be done.
•
Off-site Inspection: The QAP should cover any requirements that will require the
Agent to go off-site for inspection.
•
Safety Inspection: The QAP should provide a good description of the safety plan
and inspection program that the Agent will be performing.
•
Inspection Records: The QAP should spell out the requirements for inspection
records for each section/individual of the inspection team.
•
Testing: The QAP should, in conjunction with the contract documents, specify the
different tests required and when each will be performed.
•
Shop Drawings: The QAP should outline the procedures for review of shop
drawings.
•
O&M Instruction and In-house Training: The QAP should specify what types of
O&M manuals are required and when training will be provided.
Financial Information
It is important that the AF DM/CM knows how much money has been obligated on a project and
what the balances are in the management reserve and contingency accounts. The AF DM/CM
should also know which pending contract modifications are critical and which are merely desirable.
5-8.4
Special Considerations
If the facility being constructed has special elements such as secure local area networks (LAN),
equipment, furnishings, or special security systems, these items should be shown on a schedule
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that shows the proposed and actual dates for each major development and installation milestone.
These items can easily become pacing factors and should be intensively managed and visible
throughout the construction phase.
5-9
A-E RESPONSIBILITY
Determining A-E responsibility is primarily an Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
The content of this section is provided for AF DM/CM information only.
The means for establishing A-E responsibility is contained in FAR 36.609-1, Design Within Funding
Limitation and FAR 36.609-2, Redesign Responsibility for Design Errors or Deficiencies. The
“Design within Funding Limitations” clause (FAR 52.236-22) and the “Responsibility of the
Architect-Engineer Contractor” clause (FAR 52.236-23) are routinely included in the A-E’s design
contract. The Government will pursue A-E liability in cases where a Agent change modification
was necessary due to an error or omission (design deficiency) by the A-E and the error or omission
caused damages or additional costs without adding value to the work.
The Contracting Officer of the Agent has the obligation for pursuing A-E liability utilizing funds from
construction Supervision and Administration (S&A) accounts. The Agent notification to the A–E
must be quick to minimize damages and to allow the A-E an opportunity to propose corrections.
The A-E, even if not negligent, must correct the design error(s) or omission(s) in the plans and
specifications at no additional cost to the Government. Regardless of the outcome of any A-E
responsibility determination, document the A-E performance regarding design quality and
responsiveness in the Architect-Engineer Contract Administration Support System (ACASS)
managed by the USACE, for use on future A-E selections.
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CHAPTER 6 – PROJECT CLOSEOUT
The section of the MILCON Process Diagram below shows the project closeout activities detailed
in Chapter 6.
Inspections and documentation of project completion is an Agent (US Army Corps of Engineers
(USACE), Naval Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK
only)) responsibility. The content of this section is provided for AF DM/CM information only,
however, the AF DM/CM should work with the Agent to see that the contract is financially closed
out. A project becomes physically complete when the Agent certifies that the project is
construction complete and all deficiencies listed on the reverse side of the DD Form 1354 have
been corrected.
6-1
RED ZONE POLICY ON PROJECT CLOSE-OUT
The “Red Zone” policy approach, originally developed by Air Combat Command, begins with a
meeting held 60 days before the anticipated Beneficial Occupancy Date (BOD). Air Staff policy
requiring AF DM/CM to implement “Red Zone” meetings was established on 22 July 2002 in a
memorandum from AF/A7C. The “Red Zone” meeting gets its name from the football term used to
describe the concentration of team effort to move the ball the last 20 yards into the end zone. The
close-out of a MILCON project sometimes can be equally as hard and most definitely requires the
whole team’s effort. At this meeting, the whole Project Delivery Team (PDT) meets to discuss the
close-out process including the following:
•
Discuss, define, and achieve consensus on action necessary to complete
construction
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•
•
•
•
Build a schedule of events and assign responsibilities and actions necessary to
produce a timely physical and fiscal close-out of the project
Support user occupancy
Perform financial closeout
Document the fiscal closeout of the project in the Real Property Records
The Corps of Engineers has also adopted the policy to apply the “Red Zone” meeting process to all
MILCON projects according to their most recent Engineering and Construction Bulletin (ECB). The
“Red Zone” meeting shall be included in every Project Management Plan (PMP). The Corps
Project Manager will chair the meeting and ensure all key players are in attendance. Below is a
partial checklist regarding topics and actions to be addressed at the “Red Zone” meeting. Refer to
the ECB for additional checklist items. Note that the items shown below and in the ECB are only a
sample; additional items should be added as required.
6-1.1
Red Zone Meeting Checklist
RED ZONE MEETING CHECKLIST
Installation:
Program Manager:
Date:
Project:
Summary: Today’s meeting established the financial status as well as milestones estimated completion dates and OPRs
for all the actions necessary to complete the project.
RED ZONE MEETING
What is the Red Zone Meeting?
The Red Zone meeting is held to
discuss, define and achieve
consensus on the construction and
financial status of a MILCON project.
The ultimate goal is to build a
schedule of events necessary to
achieve project completion and
financial closeout. The meeting is
held 60 days before anticipated
beneficial occupancy.
COMPLETION MILESTONES
FINANCIAL STATUS
Knowing the finding status is crucial to building the
plan to complete and closeout the project.
Determine these amounts from the following
calculations:
Contract Funding
Contract Award Amount
$_____________
Executed Modifications
+$_____________
Total Contract Funding
$_____________
Why is it called “The Red Zone”?
Progress Payments
-$_____________
The name refers to the term used in
football to describe the effort required
to get the ball the last 20 yards into
the end zone. Once you get inside
the 20, things start to tighten up, and
it takes coordination and a concerted
team effort to achieve the goal of
getting 6 points.
Value, unplaced work
$_____________
Total contingency
$_____________
How does that relate to this
project?
Executed Modifications
-$_____________
Unobligated contingency
$_____________
Typically, getting to within 60 days of
beneficial occupancy is easy. The
tough part comes with the final push
to complete the project, get the users
moved in, finish the financial end of
the business and close it out.
Who should attend the Red Zone
Meeting?
6-2
Contingency Funding
Contingency at Award
$_____________
Contingency replenishment +$_____________
Note: Any use of remaining contingency funds
after the date of the Red Zone meeting requires
AF PM approval.
SIOH Funding
SIOH at award
$_____________
USAF Project Managers’ Guide for Design and Construction
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AF PM, Contractor, CE Ops Flight,
CE Engineering Flight,
Communications, A/E of Record,
CoE program Manager, User, CE
Fire Protection Flight, CoE Resident
Engineer, Contracting Officer.
SIOH after award
How will this meeting be run?
CONSTRUCTION STATUS: In order to
determine the specific actions required to finish
this project and assign responsibilities for those
actions, it is necessary to establish the current
completion schedule:
The AF PM will chair this meeting,
and guide discussion in two main
areas; financial and construction
status. Key project elements in these
areas will be discussed, and
consensus achieved on remaining
balances for the project funding
accounts. Responsibilities will also
be assigned for specific actions
relative to project completion
required to achieve financial
completion. The results will be
recorded by the AF PM and become
a part of the project file.
6-1.2
+$_____________
Total SIOH
$_____________
Billed to date
-$_____________
Unobligated SIOH
$_____________
Notice to proceed: _____________
Original duration: _____________
Original contract complete: _____________
Executed time extensions: _____________
New contract complete date: _____________
Key Project Completion Milestones Checklist
KEY PROJECT COMPLETION MILESTONES
During the Red Zone meeting, the AF PM will record the agreed to dates for all of the below items as
well as the OPR for meeting those dates
ITEM
DATE
Red Zone Meeting (60 days before BOD):
Mechanical Test and Balance:
Landscaping complete:
Final Cleanup:
Fire Inspection:
Safety Inspection:
Pre-final inspection:
DDForm 1354 signed:
Beneficial Occupancy Date (BOD):
Punch-list completion:
Physical Completion (90 days from BOD):
Furniture delivery:
Equipment delivery:
Communications equipment installation:
O&M training:
User move-in:
Ribbon cutting date:
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As-built delivery:
O&M manuals delivery:
Final invoice:
Final payment:
Release of claims:
Final SIOH billing:
Return of unobligated funds:
Financial completion (180 days from BOD):
6-2
OPERATIONS, MAINTENANCE, AND TRAINING
Operations, maintenance and training is primarily an Agent (US Army Corps of Engineers
(USACE), Naval Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK
only)) responsibility; however, the AF DM/CM may become involved in system testing and training
if the AF DM/CM has special knowledge or qualifications that make participation essential.
Ensure operating and maintenance (O&M) manuals, systems operating manuals, spare parts lists,
and publications describing the equipment or materials, etc., are provided to the BCE as required
by the contract specifications. Ensure a signed and dated receipt indicating the person and office
receiving these manuals is received and placed in the project file.
6-2.1
System Testing and Training of O&M Personnel
The Agent must ensure that all systems are tested in accordance with the contract documents.
Certain tests (e.g., fire protection systems) may require attendance by the BCE’s Engineering and
O&M staff and/or other personnel. Coordinate with the Agent to ensure that system testing and
training have been scheduled in advance to allow maximum participation of interested Air Force
personnel. Also, require the Agent to have complete O&M manuals available before testing and
training.
6-2.2
System Startup
The AF DM/CM should ensure that O&M personnel are allowed hands-on participation as part of
the systems start-up, testing and training. Have the Agent include time to allow O&M personnel to
turn on and operate all systems so that problems can be identified for correction by the Contractor.
For systems complicated enough to require training as a permanent record, the AF DM/CM should
specify that Contractor training be videotaped.
6-2.3
Commissioning
Commissioning is the systematic process of ensuring and documenting that all building systems
perform according to specification and design intent, consistent with the owner’s operational
needs. The commissioning process begins in the project-planning phase, is an integral part of
facility delivery and continues through the first year of occupancy. Fundamental building systems
commissioning is a prerequisite for obtaining LEED™ certification, and additional commissioning
actions can achieve further LEED™ points. All new facilities and major renovation project will
include commissioning to the extent practicable. Commissioning requires the coordinated efforts
of a team comprised of the user, designer, construction agent, construction contractor and
personnel performing operations and maintenance. Typical facility systems that are the focus of
commissioning includes HVAC; plumbing; electrical; fire alarm and suppression; security; and all
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types of audio, visual and computer communications. For additional guidance, refer to the Corps
of Engineers Engineering and Construction Bulletin No. 2003-19, Directory of Expertise on Design
Construction Commissioning, the Whole Building Design Guide, and the LEED™ Green Building
Rating System from the United States Green Building Council.
6-3
ACCEPTANCE INSPECTIONS
Note: The Prefinal and final inspections are primarily a Design and Construction Agent (US Army
Corps of Engineers (USACE), Naval Facilities Engineering Command (NAVFAC), AFCEE or AF
Waterbeach (UK only)) responsibility. However, the AF DM/CM should participate in these
inspections, whenever possible.
6-3.1
Applicable Programs
This section outlines the procedures and responsibilities for transferring and accepting constructed
facilities. Additional information can also be found in UFC 1-300-08, Criteria for Transfer and
Acceptance of Military Real Property.
Types of MILCON Acceptance Inspections - MILCON projects require preliminary, pre-final and
final inspections. The Agent must ensure the participants receive a timely invitation for any of
these inspections.
Preliminary Inspection - During preliminary inspection, the Construction Agent and Air Force
personnel identify deficiencies, establish standards of quality for acceptance and mutually agree on
a beneficial occupancy date. The construction contractor does not attend. This inspection should
occur when the construction work is substantially complete, and is usually scheduled in conjunction
with the Pre-Final Inspection. This inspection must be conducted in the absence of the contractor
to allow the Agent and the Air Force enough time to discuss and settle construction questions.
During the inspection, all facility systems should be in operation, except by prior agreement or as
specified in the contract, for the various representative of the BCE organization to observe and
review. In addition, the possible date for the Final Inspection should be discussed.
Pre-final Inspection - The Construction Agent and the contractor conduct a detailed and
thorough inspection to identify construction deficiencies and remaining contractual items (such as
systems operating manuals, spare parts lists, as-built drawings and training requirements). The
Agent should schedule the Pre-Final Inspection to occur as soon as possible after the Preliminary
Inspection as these inspections go hand-in-hand. The Agent should compile the list of defects
(punch list) which may have been identified during the Preliminary Inspection. A copy of the punch
list shall be provided to the BCE, as well as the contractor. The Agent should not skip inspections
stages by re-designating a Pre-Final Inspection as a Final Inspection.
Final Inspection - The primary purpose of the Final Inspection is to accept the constructed facility
from the contractor, and to transfer the facility from the Agent to the Air Force. The Agent should
provide the AF DM/CM, the host and tenant major commands, and the BCE a copy of the list of
defects (punch list) identified during the Preliminary and Pre-Final Inspections in advance of the
inspection date. It is strongly preferred that all deficiencies on the punch list be corrected before
conducting the Final Inspection. If any deficiencies remain uncorrected on the date of the Final
Inspection, they must be itemized on the DD Form 1354 along with their estimated correction date.
Final Acceptance - This occurs when all punch-list items have been corrected by the contractor
and the Agent accepts the work as complete. If there is no follow-on work under another contract
or task order, then Final Acceptance would also be the Physical Completion date.
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6-3.2
Responsibilities
The Air Force Construction Manager and the Construction Agent share the primary responsibility
for delivering the user a quality facility. If Construction Manager responsibilities have been
delegated by the AF DM/CM to the BCE, or will be performed by the AF DM/CM, then that office
shares the responsibility with the Construction Agent.
Quality Assurance - Government personnel (normally the Construction Agent for MILCON and
the BCE for O&M) perform quality assurance and serve as Contracting Officer Representatives.
6-3.3
Design Deficiencies
In a design-bid-build project, the building contractor is contractually required to build according to
the plans and specifications and is not responsible for deficiencies caused by errors or omissions
in the design or contract documents. The A-E and the Design Agent are responsible for correction
of design deficiencies within the scope of the project. Normally these deficiencies will be identified
during the course of construction and corrected by modification to the construction contract.
However, if these items are not identified until near or after contract completion, it may be best to
correct these deficiencies through a separate contract or other purchasing action, although this
strategy should be employed only as a last resort. Strive for early resolution of design deficiencies.
6-3.4
Construction Deficiencies
Construction deficiencies are the result of poor workmanship, inadequate inspection or QA/QC,
incomplete construction, inferior or damaged materials, unacceptable substitution of material, and
failure to construct according to the contract plans and specifications. If the construction does not
comply with the contract specifications and drawings, the Contractor is responsible for correction of
the deficiencies. Have the Agent follow-up with the Contractor to ensure these construction
deficiencies are properly corrected.
The Contractor is responsible for latent deficiencies, or deficiencies that become apparent after
construction completion, even if final release has been issued. Good craftsmanship and correct
engineering practices are always the key to good construction. When responsibility is not quickly
determined, have the Agent unilaterally direct the A-E and the Contractor to correct the deficiency
and establish liability and payment responsibilities later, although this strategy should be employed
only as a last resort. As with design issues, strive for early resolution of construction deficiencies.
6-3.5
Joint Occupancy
Approval - The Construction Manager may recommend approval of joint occupancy to the
Contracting Office when it is advantageous to the government.
Joint Occupancy Date - The AF DM/CM (working with the customer and BCE), and the Agent
jointly determine the joint occupancy date.
Facility Maintenance Responsibility - When agreeing to joint occupancy, the Air Force assumes
responsibility for maintenance and repair of items not under warranty and for operations of portions
of the facility occupied during joint occupancy.
Contractor Occupancy After Joint Occupancy - When the Air Force agrees to let a contractor
continue to occupy or use a facility after it has accepted the facility, for any purpose other than to
finish correcting deficiencies, the Air Force treats the contractor as a tenant and receives payment
(according to AFI 65-601, Volume 1, Budget Guidance and Procedures, for any logistical support
the Air Force provides to the contractor).
There may be occasions when it is desirable for the Air Force or third-party contractors to occupy a
portion of a new facility prior to beneficial occupancy. This is a joint occupancy condition and may
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be selectively used to enhance the overall outcome of a project. However, use this tool only after
very careful consideration and only after formal agreement among all involved parties. Joint
occupancy is provided for by the “Use and Possession Prior to Completion” clause (FAR 52.23611). Joint occupancy does not relieve the Contractor of the responsibility for complying with the
terms of the contract. Joint Occupancy should be discussed in a Pre-performance Conference in
the presence of all Contractors, if possible.
The AF DM/CM needs to know what situations warrant consideration for joint occupancy. There
may be a requirement for the Air Force or other contractors to install and test critical equipment
(i.e., communications, computer, medical, etc.) which must be operational before the facility can be
beneficially occupied. Another situation is a firm requirement to occupy a well-defined area that
will be sufficiently completed and accessible before the rest of construction is complete. There are
many potential joint occupancy situations, and all situations must be weighed carefully before
proceeding.
Joint Occupancy can be a useful tool, but use it judiciously. It is absolutely essential to have a
Joint Occupancy Agreement (JOA) covering the particulars of the occupancy, signed by all
appropriate parties. Some of the specifics that the JOA should cover include:
•
•
•
•
•
•
•
The areas involved
Critical times for the various areas
Government and Contractor access
O&M responsibilities
Phasing requirements
Inspection requirements—before and after occupancy
Warranties
In general, ensure the JOA defines the responsibilities and limitations of all parties concerning the
construction, protection and use of the areas to be jointly occupied. The JOA should be signed by
the Contractor, the Agent, the BCE, the AF DM/CM, and the User. The Health Facilities Office
should also sign the JOA for medical projects.
6-3.6
DD Form 1354
The DD Form 1354, Transfer and Acceptance of Military Real Property, is the legally established
method for transferring ownership of Government real property. The Agent must prepare the DD
Form 1354 only for the area(s) inspected and ready for acceptance by the Air Force (see UFC 1300-08, Criteria for Transfer and Acceptance of Military Real Property for additional information).
The AF DM/CM and the BCE must ensure that all punch list items identified during the pre-final
and final inspections are corrected or have been properly annotated with the anticipated correction
date on the back of the DD Form 1354 before it is signed. When all the work has been completed,
including the punch list items, the Agent should prepare a final DD Form 1354 and submit it to the
BCE. All BCE-signed DD Forms 1354 must be filed in the Base’s real property records.
6-3.7
Facility Acceptance/Beneficial Occupancy Date (BOD)
After the final inspection acceptance and completion of DD Form 1354, the Air Force may accept
the facility from the Agent. This point marks the date that the facility is ready for occupancy by the
User and is referred to as the Beneficial Occupancy Date (BOD). Although BOD normally occurs
after all the construction and the final inspection have been completed, a partial BOD can take
place in order to allow the User to vacate other space scheduled for construction or to immediately
begin performing part of the User’s mission. Partial BODs should be discouraged if the partial
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occupancy serves no real advantage for the performance of the User’s mission as it may cloud the
issue of warranties expiration. The major role of the AF DM/CM at BOD is to return all funds
except those required for approved modifications not yet executed. No funds will be held for
pending modifications or pending claims.
Beneficial Occupancy is the term used to describe the procedure when the Government
occupies or makes use of any part of the work prior to Substantial Completion. The presence of
the Government within the project site may cause disruption of the contractor's activities;
therefore, Beneficial Occupancy is subject to conditions set forth in the General Conditions of
the contract.
The Government is not required to take Beneficial Occupancy and may wait for completion of
the DD form 1354 to occupy and use the site. However, if the Government decides to occupy
any portion of the project space prior to acceptance, the Construction Agent (CA) must issue a
Certificate of Beneficial Occupancy. A Certificate of Beneficial Occupancy is not issued without
concurrence of the AF DM/CM if Beneficial Occupancy will occur prior to Substantial Completion
or acceptance of the facility.
Substantial Completion means that stage in the progress of the work, as determined by the
AF DM/CM, when the work is complete and in accordance with the contract documents except
for minor items which do not impair the users’ ability to occupy and fully utilize the work for its
intended purpose. With concurrence of the AF DM/CM, the CA issues the Certificate of
Substantial Completion certifying that, all work is in place, all required agency approvals have
been received, all systems and equipment are fully functioning. Examples of minor punch list
items such as patching, repair or replacement of light switches, touch-up painting, repair of
scratches on walls or floors remain to be completed.
The BOD is an important milestone and is used in calculating multiple Dirtkicker
performance measures to include: Construction timeline, schedule growth, and financial
closure.
6-3.8
Warranty
The typical construction contract requires the Contractor to warrant all workmanship, materials, and
equipment for a period of one year from the date of substantial completion or beneficial occupancy,
whichever occurs first. In addition, the contract may specify that some work or equipment will be
warranted for longer periods and may contain specific response times. Also, there are specific
manufacturer’s warranties not required by specifications but available due to the Contractor’s
choice of materials allowed in submittals. Examples of contract-specific warranty items are window
systems, roof membranes, and HVAC equipment.
To preserve the warranty on expensive and/or complex equipment, it may be necessary to require
the Contractor to provide periodic maintenance and repair in the presence of O&M technicians.
The FAR clause for construction warranties is FAR 52.246–21, Warranty of Construction. Have
the Agent provide to the BCE a composite listing of all warranties in effect from the construction
work along with points of contact and telephone numbers in the event of problems. Normally this
list is part of the contents of the DD Form 1354, but having a duplicate of that list of warranty items
makes distribution and discussion significantly easier.
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6-3.9
As-Built Drawings
The Contractor is required to mark one set of the contract drawings and specifications with the
differences between what was required in the contract documents and how the project was actually
built. These differences should include not only the contract modifications, but any differences due
to the Contractor’s or using agency’s selection of materials and contractor installation techniques.
These marked-up documents are turned over to the Agent to incorporate the noted differences
onto the original (usually mylar) drawings and mark the drawings “as-built.” Check with the Agent
to ensure this is accomplished by the required time, and that the as-built drawings are provided the
BCE.
On most installations, the base drawings are digitized for storage and retrieval through a computer
aided design/drafting (CADD) system. Ensure that the Construction Agent and the Design Agent
are working together to accomplish the updating and digitizing in a timely manner. Be sure to
follow through to see that the digitized records are turned over to the BCE. Also assure that one
complete set of as-builts, including drawings, design analysis and specifications on CD-ROM(s) or
other appropriate electronic media are provided to the AF DM/CM.
6-4
CLAIMS
Note: Management of claims is an Agent (US Army Corps of Engineers (USACE), Naval Facilities
Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility. The
content of this section is provided for AF DM/CM information only
Modifications made to a contract after they have been awarded have the potential for claims from
the Contractor. The Contracting Officer represents the AF in executing these changes. The most
important thing to remember is that once a contract is awarded, the contract terms and
requirements are binding on both the AF and the Contractor.
Claims can be minimized with proper planning, early problem recognition and resolution through
partnering, and the use of claims avoidance techniques. Many of the problems that arise during
construction come from indecision and poor planning early in the project. The following list
provides insight and guidance on claims mitigation and avoidance:
•
Have a pre-acquisition strategy. The delivery method, type and number of
contracts, delivery organization, and project scope should be established before
design begins. The quality and type of contract documents may vary substantially
with the acquisition strategy chosen and the scope definition. Conflicting
specification sections most frequently occur when the acquisition strategy, scope, or
building system selection change, and the design or construction reviews don’t
correct the resulting conflicts.
•
Use particular care in reviewing User comments concerning specialty equipment
and functions. Users often request contract modifications to have the most up-todate equipment in the project. These equipment changes usually result in easy-toshow delay claims because of their close association with the previously completed
or planned contract work. When the risk of change for technical improvements is
very high, include language in the contract to cost these modifications on the basis
of time and materials.
•
Grant all justifiable requests by the Contractor for extensions of time unless there is
substantial reason for not doing so. Failure to issue time extensions will seldom
result in an earlier job completion; rather, it is more likely to result in claims for
accelerated performance of the work. Reasonable extensions of time due to
weather, strikes, and other delays for which the AF does not have to compensate
the Contractor should be granted when warranted.
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•
At the start of the job, require the Contractor to identify in advance when the AF’s
input will be needed on items such as GFE delivery dates and rough-in data.
Require the Contractor to include this information in the project schedule. This
action may preclude later claims that the AF DM/CM failed to fulfill responsibilities
assigned under the contract.
•
Resolve claims in a timely manner. The Contracting Officer should normally render
a decision within 60 days for claims less than $50,000. In claims for errors and
omissions, be cautious that the A-E is not unduly protecting its position at the
expense of the AF. Claims resolution includes prompt investigation of the situation
and prompt response to all Contractor notices (notification of changed contract
conditions) and claim letters (intent to file request for time or compensation).
•
Resolve modifications and claims as they occur. At the end of the project, the AF
has little leverage over the Contractor as most of the work has been completed and
most of the payments have been made to the Contractor. Also, the Contractor can
more easily develop impact and delay claims on a “ripple effect” from multiple
changes when resolution is delayed to the conclusion of the project.
•
Keep good records, particularly about Contractor manpower levels, days or part
days worked, and areas where work is performed. These records may be useful in
the event that a delay, acceleration, or a loss-of-efficiency claim is submitted.
These records should also document errors and failings by the Contractor and
contain letters that place the Contractor formally on notice of defects. Use of dated
photographs and video can really make a difference as a supplement to the
documentation.
•
Modifications executed by the Contractor for additional work or as compensation for
design errors and omissions should expressly state that the contract time is not
extended because of the work within the modification if that is the case. Avoid
situations where the Contractor is paid labor and material costs, but reserves
the right to claim additional compensation later for delay, disruption, and loss
of efficiency. Make every reasonable effort to negotiate such costs as part of the
modification. There may even be projects where the AF DM/CM must ask the
Contracting Officer to unilaterally determine that the time and compensation
associated with a modification occurred because of an uncooperative Contractor.
When Claims come in:
6-5
•
Treat them in a business-like manner. Do not get hostile and close communication
channels with the Contracting Officer or the Contractor that might hinder subsequent
negotiations.
•
Insist that the Contracting Officer meet face-to-face with the Contractor if the claim
is not easily understood or seems invalid.
•
Make sure the AF’s attorney is involved immediately.
•
Don’t succumb to payment of invalid claims just to get rid of them.
PHYSICAL COMPLETION
Documentation of project completion is an Agent (US Army Corps of Engineers (USACE), Naval
Facilities Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only)) responsibility.
The content of this section is provided for AF DM/CM information only, however, the AF DM/CM
should work with the Agent to see that the contract is physically and financially closed out. A
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January 2008
project becomes physically complete when the Agent certifies that the project is construction
complete, all deficiencies listed on the reverse side of the DD Form 1354 have been corrected,
copies of all O&M manuals and as-builts have been provided to the installation BCE, and
equipment training has been completed. The Agent must assure that the O&M manuals and asbuilt drawings are provided not later than the Red Zone meeting.
6-5.1
Financial Closeout
A MILCON project is defined as financially closed when:
•
All costs applicable to the MILCON project are recorded and those costs are
included in the final CWE.
•
All MILCON project obligations have either been liquidated or canceled.
•
All accounts receivable pertinent to the MILCON project are collected.
The AF target financial closeout period is twelve months for CONUS projects and 15 months for
PACAF and USAFE projects. This period starts on the beneficial occupancy date (BOD) when the
User occupies the facility and ends on the date the Agent initiates the revocation directive certifying
payment of all outstanding bills. Financial closeout enables the Air Force to withdraw surplus
funds and to complete processing of the new facility into the Real Property Records in a timely
manner.
Work closely with the AF DM/CM Funds Manager and the Agent Financial Manager to complete
financial closeout. On the other hand, do not let pending claims that cannot be settled within the
prescribed time period preclude financial closeout or let the Agent retain funds for potential claims
or for pending claims to be acted upon by an appeals board. Monitor closely any remaining
deficiencies to ensure that any cause for closeout delay is resolved promptly.
Although the Air Force goal is to reduce the closeout time, do not financially close a
project with outstanding construction or design deficiencies.
6-5.2
Post Occupancy Evaluation
The Contractor is required by contract to warrant the project’s workmanship and material for one
year. Perform a Post Occupancy Evaluation during the ninth to eleventh month period after
beneficial occupancy, noting any and all defective work. Report all construction deficiencies to the
Agent for correction by the Contractor. Document problems or mistakes that were made during the
design and give this information to the DA to review for other similar projects. The Post Occupancy
Evaluation Team should include the Agent, the User, the BCE, and the AF DM/CM. The Agent
summarizes “lessons learned” and distributes them to the AF DM/CM and BCE. The AF DM/CM
sends items of interest concerning criteria to AF/A7CP. BCE personnel check 1-year warranty
items even when a post-occupancy evaluation team inspection does not take place. BCE
personnel will coordinate corrective action with the Construction Agent for discrepancies
discovered during the 1-year warranty check.
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APPENDIX
APPENDIX A – REFERENCES AND LINKS
A-1
Accessibility References
AFCEE Accessibility Page
Americans with Disabilities Act Accessibility Guidelines (ADAAG)
Architectural Barriers Act of 1968 (Public Law 90-480)
Uniform Federal Accessibility Standards (UFAS)
U.S. Access Board
A-2
Air Force References and Organizations
Achieving Design Excellence
Air Force Center for Engineering and the Environmental (AFCEE)
Air Force Civil Engineer Support Agency (AFCESA)
Historical Air Force Construction Cost Handbook
Air Force Institute of Technology (AFIT)
Air Force Link
Air Force MILCON Program Management Plan (PgMP)
Air Force Parametric Cost Engineering System (PACES)
Air Force e-Publishing
Air Force Services Agency (AFSVA)
Air Force Technology Transfer Program
AFSVA Golden Eagle Standards
Architect-Engineer Services with the Air Force
USAF Dirtkicker Criteria
Level 2 Memorandum of Understanding with Army Corps of Engineers
Memorandum of Understanding Between the AF and the USACE
MILCON Coach
Remedial Action Cost Engineering and Requirements (RACER)
USAF Design Awards Program
USAF Assistance Team Program Handbook
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USAF Project Managers’ Guide for Design and Construction
January 2008
A-3
Air Force Design and Project Management Guides
Air Force Architectural Compatibility Design Guide
Air Force Interior Design Guides
Air Force Sustainable Facilities Guide
US Air Force Family Housing Guide for Planning, Programming, Design, and
Construction
Air Force Family Housing Support Facilities Guide
Air Force Housing Privatization
Architectural - Engineering Services with the Air Force
Master Landscape Construction Specifications
Project Managers Guide to Military Family Housing
USAF Design-Build Plus User’s Guide
USAF Entry Control Facilities Design Guide
USAF GOQ Guide Resident’s Handbook; GOQ Standards Volume I
USAF GOQ Standards for Planning, Programming, Design, and Construction; GOQ
Standards Volume II
USAF Landscape Design Guide
USAF Installation Force Protection Design Guide
A-4
Air Force Instructions (AFI)
AFI 10-245, Air Force Antiterrorism (AT) Standards
AFI 31-101, Air Force Installation Security Program (FOUO)
AFI 31-203, Security Forces Management Information System (SFMIS)
AFI 32-1001, Operations Management
AFI 32-1021, Planning and Programming Military Construction (MILCON) Projects
AFI 32-1022, Planning and Programming Non-Appropriated Fund Facility Projects
AFI 32-1023, Design and Construction Standards and Execution of Facility Construction
Projects
AFI 32-1067, Water Systems
AFI 32-6001, Family Housing Management
AFI 32-6002, Family Housing Planning, Design, and Construction
AFI 32-6003, General Officer Quarters Management
AFI 32-6004, Furnishings Management
AFI 32-7063, Air Installation Compatible Use Zone Program
AFI 32-7061, The Environmental Impact Analysis Process
AFI 33-104, Base-Level Planning and Implementation
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USAF Project Managers’ Guide for Design and Construction
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AFI 34-201, Use of Non-Appropriated Funds
AFI 34-209, Non-Appropriated Fund Financial Management and Accounting
AFI 34-105, Programming for Non-Appropriated Fund Facility Requirements
AFI 65-601, Budget Guidance and Procedures
AFI 48-145, Occupational Health Program
AFI 65-106, Appropriated Fund Support of Morale, Welfare, and Recreation and NonAppropriated Fund Instrumentalities
A-5
Air Force FAR Supplements (AFFARS)
AFFARS Table of Contents
AFFARS 5323.890-7, Contract Clauses
AFFARS 5336.6, Architect-Engineer Services
AFFARS 5336.690 Contracting with 8(a) or Disadvantaged Architect-Engineer
Businesses
AFFARS 5336.691, Use of the indefinite-delivery/indefinite-quantity (IDIQ) contract type
for the acquisition of architect-engineer services
AFFARS 5352.223-9000, Elimination of Use of Class I Ozone Depleting Substances
(ODS).
AFFARS Appendix BB
A-6
Air Force Handbooks (AFH) and Manuals (AFM)
AFH 32-1084, Facility Requirements
AFM 32-1089, Air Force Military Construction and Family Housing Economic Data
Analysis Guide
AFMAN 91-201, Explosive Safety Standards
A-7
AF Occupational and Health Standards (AFOSH)
AFOSH Standard 91-10, Civil Engineering
AFOSH Standard 91-46, Materials Handling and Equipment Storage
AFOSH Standard 91-501, Air Force Consolidated Occupational Safety Standard
A-8
Antiterrorism/Force Protection (AT/FP)
AFI 10-245, Air Force Antiterrorism (AT) Standards
AFI 31-101, The Air Force Installation Security Program (FOUO)
AFI 31-203, Security Forces Management Information System (SFMIS)
USAF Installation Force Protection Design Guide
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USAF Entry Control Facilities Design Guide
DOD Directive (DODD) 2000.12, DOD Antiterrorism/Force Protection (AT/FP) Program
DOD Instruction (DODI) 2000.14, DOD Combating Terrorism Program Procedures
EUCOM Operations Order 03-11 with FRAGO (latest edition) for USAFE installations
UFC 4-010-01, DOD Minimum Antiterrorism Standards for Buildings
UFC 4-010-02, Design (FOUO) DOD Minimum Standoff Distances for Buildings
A-9
Construction Industry References
American General Contractors (ACG)
American Institute of Architects (AIA)
America Society of Civil Engineers (ASCE)
American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE)
ASTM International (ASTM)
Construction Specifications Institute (CSI)
Construction Criteria Base (CCB) a service of the Whole Building Design Guide
Design Build Institute of America (DBIA)
Dun and Bradstreet (D&B)
Engineering News Record (ENR)
Illuminating Engineering Society of North America (IESNA)
International Code Council (ICC)
National Electric Code (NEC)
National Fire Protection Association (NFPA)
National Institute of Building Sciences (NIBS)
The Carpet and Rug Institute
Underwriters Laboratories (UL)
United States Green Building Council (USGBC)
A-10
Department of Defense
Architect-Engineer Contract Administration Support System (ACASS)
Micro Computer Aided Cost Engineering System (MCACES)
Corps of Engineers (USACE)
Department of Defense (DOD)
DODI 1010.15, Smoke-free DOD Facilities (enclosure 11)
DOD Directive (DODD) 2000.12, DOD Antiterrorism/Force Protection (AT/FP) Program
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DOD Instruction (DODI) 2000.14, DOD Combating Terrorism Program Procedures
Naval Facilities Engineering Command (NAVFAC)
Tri-Service Detailed Cost Engineering System
TI 800-03, Technical Requirements for Design-Build (USACE)
DOD Directive 4270.5, Military Construction
A-11
Department of Defense FAR Supplements (DFARS)
DFARS, Table of Contents
DFARS 211.5, Liquidated Damages
DFARS 236.6, Architect-Engineer Services
DFARS 236.602-1, A-E Services Criteria Selection
DFARS 236.606-70, Statutory Fee Limitation
DFARS Part 19, Small Business Programs
DFARS 219.000, Scope of Part
DFARS 219.001, Definitions
DFARS 219.1005, Applicability
A-12
Engineering Technical Letters (ETLs)
Information regarding AF ETLs may be obtained from the Whole Building Design Guide
website at the following URL: http://www.wbdg.org/ccb/browse_cat.php?o=33&c=125
ETL 00-1, EPA Guideline Items in Construction and Other Civil Engineering
Specifications
ETL 02-12, Communications and Information System Criteria for Air Force Facilities
ETL 02-17, Use of Non-Potable Water to Replace Potable Water
ETL 07-4, Air Force Carpet Standard
A-13
Federal Acquisition Regulations (FAR)
Federal Acquisition Regulation, (FAR) Table of Contents
FAR Part 1, Scope of Part
FAR Part 2, Definitions of Words and Terms
FAR Part 3, Improper Business Practices and Personal Conflicts of Interest
FAR Part 4, Administrative Matters
FAR Part 5, Publicizing Contract Actions
FAR 5.203, Publicizing and Response Time
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FAR 5.207(b), Synopses of Proposed Contract Actions
FAR 5.207(g), Cancellation of Synopsis
FAR Part 6, Competition Requirements
FAR 6.304, Approval of the Justification
FAR 6.401, Sealed Bidding and Competitive Proposals
FAR Part 7, Acquisition Planning
FAR Part 8, Required Sources of Supplies and Services
FAR Part 9. Contractor Qualifications
FAR 9.104, Standards
FAR 9.106, Pre-Award Surveys
FAR Part 14, Sealed Bidding
FAR 14.404-4, Restrictions on Disclosure of Descriptive Literature
FAR Subpart 14.5, Two Step Sealed Bidding
FAR Part 15, Contracting by Negotiation
FAR 15.102, Oral Presentations
FAR 15.202. Advisory Multi-Step Process
FAR 15.203, Requests for Proposals
FAR 15.403-4, Requiring Cost or Pricing Data
FAR15.404-2, Information to Support Proposal Analysis
FAR 15.404-4, Profit
FAR 15.406-3, Documenting the Negotiation
FAR 15.605, Content of Unsolicited Proposals
FAR 15.609, Limited Use of Data
FAR Part 16, Types of Contracts.
FAR 16.202, Subpart 16.2 - Firm Fixed Price Contracts
FAR 16.203, Subpart 16.2 - Fixed Price Contracts with Economic Price Adjustment
FAR 16.304, Subpart 16.3 – Cost Plus Incentive Fee Contracts
FAR 16.305, Subpart 16.3 – Cost Plus Award Fee Contracts
FAR 16.306, Subpart 16.3 – Cost Plus Fixed Fee Contracts
FAR 16.403, Subpart 16.4 - Fixed Price Incentive Contracts
FAR 16.404, Subpart 16.4 - Fixed Price Contracts with Award Fees
FAR 16.601 Subpart 16.6 – Time and Material Contracts
FAR 16.603, Subpart 16.6 - Letter Contracts
FAR Part 19, Small Business Programs
FAR 19.1001, General
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FAR 19.1005, Applicability
FAR 19.805, Competitive 8 (a)
FAR 19.1006, Exclusions
FAR Part 23, Environment, Energy and Water Efficiency, Renewable Energy
Technologies, Occupational Safety, and Drug-Free Workplace
FAR 23.401, Subpart 23.4 - Use or Recovered Materials – Definition
FAR Part 36, Construction and Architect -- Engineer Contracts
FAR 36.6, Subpart 36.6 - Architect - Engineer Services
FAR 36.300, Scope of Part
FAR 36.601-1, Public Announcement
FAR 36.602-1, Selection Criteria
FAR 36.602-2, Evaluation Boards
FAR 36.609-1, Design Within Funding Limitations
FAR 36.609-2, Redesign Responsibility for Design Errors or Deficiencies
FAR Part 48, Value Engineering
FAR 48.104, Sharing Arrangements
FAR Part 52, Solicitation Provisions and Contract Clauses
FAR 52.102, Incorporating Provisions and Clauses
FAR 52.215-8, Order of Precedence
FAR 52.222-6, Davis-Bacon Act
FAR 52.236-11, Use and Possession Prior to Completion
FAR 52.236-22, Design Within Funding Limitations
FAR 52.236-23, Responsibility of the Architect-Engineer Contractor
FAR 52.246,
FAR 52.246-12. Inspection of Construction
FAR 52.246–21, Warranty of Construction
FAR 52.248, Value Engineering Provisions and Clauses
FAR Supplement, AFAC 92-44
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A-14
Forms
AF Form 9, Request for Purchase
AF Form 66, Schedule of Material Submittals
AF Form 327, BCE Work Order
AF Form 332, Work Request Authorizations
AF Form 813, Request for Environmental Impact Analysis
AF Form 1178, Project Cost Estimate Summary
AF Form 1178a, Project Cost Estimate Worksheet – Building Description
AF Form 1178b, Project Cost Estimate Worksheet – Detailed Cost Estimate
AF Form 1477, Construction Inspection Record
DD Form 1391, Military Construction Project Data
DD Form 1354, Transfer and Acceptance of Military Real Property
SF 254, Architect-Engineer Related Services Questionnaire
SF 255, Architect-Engineer Related Services Questionnaire for Specific Project
SF 1442, Solicitation Offer and Award
A-15
Government References
Code of Federal Regulations
Commerce Business Daily
Competition in Contracting Act
Davis-Bacon Act
Electric Current Abroad
Environmental Protection Agency
Federal Acquisition Institute
Federal Energy Management Program
National Archives and Records Administration
Office of Management and Budget
A-16
Sustainable Development References
Air Force Sustainable Development Policy
Air Force Sustainable Facilities Guide
Leadership in Energy and Environmental Design (LEED™)
Construction and Demolition Waste Management Guide
Energy Policy Act (EPAct) 2005
A-8
USAF Project Managers’ Guide for Design and Construction
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Environmental Protection Agency
Executive Order 13423, Strengthening Federal Environmental, Energy, and
Transportation Management
Instructions for Implementing Executive Order 13423
Federal Leadership in High Performance and Sustainable Buildings Memorandum of
Understanding (MOU)
Green Procurement
Greening the Government, A Guide to Implementing Executive Order 13101
LEED™ Application Guide for Lodging
National Pollutant Discharge Elimination System
Resource Conservation and Recovery Act (RCRA)
UFC 1-900-01, Design: Selection Methods for Reduction, Reuse, and Recycling of
Demolition Waste
U.S. Fish and Wildlife Agency (Section 7 Consultation)
United States Green Building Council (USGBC)
Whole Building Design Guide
A-17
Unified Facilities Criteria (UFC)
Downloadable PDF files for UFC may be obtained from the following URL:
http://www.wbdg.org/ccb/browse_cat.php?o=29&c=4
UFC 1-200-01, Design: General Building Requirements
UFC 1-300-08, Criteria for Transfer and Acceptance of Military Real Property
UFC 1-900-01, Design: Selection Methods for Reduction, Reuse, and Recycling of
Demolition Waste
UFC 3-120-01, Design: Air Force Sign Standard
UFC 3-120-10, Design: General Interior Design Requirements
UFC 3-230-02, Operations and Maintenance: Water Supply Systems
UFC 3-260-01, Airfield Planning and Heliport Design
UFC 3-310-01, Design: Structural Load Data
UFC 3-310-02A, Design: Structural Design Criteria for Buildings
UFC 3-310-04, Design: Seismic Design for Buildings
UFC 3-400-01, Design: Energy Conservation
UFC 3-410-01FA, Design: Heating, Ventilating, and Air Conditioning
UFC 3-410-02A, Design: Heating, Ventilating, and Air Conditioning (HVAC) Control
Systems
UFC 3-420-01, Design: Plumbing Systems
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UFC 3-520-01, Design: Interior Electrical Systems
UFC 3-600-01, Design: Engineering Fire Protection
UFC 3-600-01, Design: Fire Protection Engineering for Facilities
UFC 3-600-02, O& M: Inspection, Testing, and Maintenance of Fire Protection System
UFC 3-701-07, DOD Facilities Pricing Guide
UFC 4-010-01, DOD Minimum Antiterrorism Standards for Buildings
UFC 4-010-02, Design: DOD Minimum Standoff Distances for Buildings (FOUO)
UFC 4-021-01, Design and O&M: Mass Notification Systems
UFC 4-510-01, Design: Medical Military Facilities
A-18
United States Code
U. S Code Collection, Table of Contents
Title 10 U.S.C 2305, Contracts: planning, solicitation, evaluation, and award procedures
Title 10 U.S.C 2305a, Design-build selection procedures
Title 10 U.S.C. 2323, Contract goal for small disadvantaged businesses and certain
institutions of higher education
Title 10 U.S.C. 2805, Unspecified minor construction
Title 10 U.S.C. 2807, Architectural and engineering services and construction design
Title 10 U.S.C. 2851, Supervision of military construction projects
Title 10 U.S.C. 2852, Military construction projects: waiver of certain restrictions
Title 10 U.S.C. 2853, Authorized cost variations
Title 10 U.S.C. 2854, Restoration or replacement of damaged or destroyed facilities
Title 10 U.S.C. 2855, Law applicable to contracts for architectural and engineering
services and construction design
Title 10, U.S.C. 2855(a), Law applicable to contracts for architectural and engineering
services and construction design
Title 10 U.S.C. 2856, Limitations on barracks space by pay grade
Title 10 U.S.C. 2857, Use of renewable forms of energy in new facilities
Title 10 U.S.C. 2858, Limitation on the use of funds for expediting a construction project
Title 10 U.S.C. 2859, Construction requirements related to antiterrorism and force
protection
Title 10 U.S.C. 2860. Availability of appropriations
Title 10 U.S.C. 2862. Turn-key selection procedures
Title 10 U.S.C. 4540, Architectural and engineering services (Army)
Title 10 U.S.C. 7212, Employment of outside architects and engineers (Navy)
Title 10 U.S.C. 9540, Architectural and engineering services (Air Force)
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Title 15 U.S.C. 631, et seq, Aid to Small Business
The Brooks Act - Public Law 92.582
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APPENDIX B – CONSTRUCTION CONTRACT TYPES
B-1
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Currently IDIQ contracts for MILCON, Minor Construction, MFH, Medical, O&M, and NAF projects
consist of the basic contract year, plus four option contract years. Maximum fee limitations are
$750,000 per contract year and $299,000 per delivery order. However, the initial delivery order in
any contract year may be up to the contract year limitation, or $750,000.
•
$750,000 or less: The Commanders of AFCEE and AFCESA are the selection
Approval Authorities for IDIQ contracts where the expected fee in any single
contract year is $750,000 or less. AFCEE may delegate this authority to the BCE if
that organization possesses the necessary technical staff and registered
professionals to satisfy the requirements for selection boards.
•
More than $750,000: AF/A7C is the selection Approval Authority for IDIQ contracts
where the expected A-E fee in any single contract year is expected to exceed
$750,000.
•
The number of IDIQ contracts that a base may have in place generally is limited
only by the requirement that sufficient A-E workload exists to justify the multiple
contracts and that these multiple IDIQ contracts do not unduly restrict competition.
When multiple A-E contracts are awarded from a single solicitation, the fee
limitations apply separately to each contract.
AF/A7C and SAF/AQC may grant waivers to these IDIQ fee limitations when justified by unusual
circumstances or requirements. Two separate waiver requests are required: The requesting Base,
AFCEE, or AFCESA must submit a waiver request to AFFARS 5336.691, to SAF/AQC. The
AFCEE/CC, or AFCESA/CC also must submit a waiver request for selection Authority Approval
from AF/A7CC. The notification required by Title 10 U.S.C. 2807 does not apply to IDIQ A-E
contracts. Refer to AFFARS Subpart 5316.5, Indefinite-Delivery Contracts for additional
information.
B-2
Firm Fixed Price (FFP)
A firm fixed price is equivalent to a “lump sum” contract that includes all labor, materials, expenses
and other costs. The low price is the critical element, assuming all other considerations are equal.
It is not subject to any adjustment on the basis of contractor’s cost experience and places the
maximum cost risk on the contractor. This contract type gives the contractor has greater incentive
to control costs and places a minimum administrative burden on all parties. The level of effort
payment is based on effort expended, rather than results achieved. Contractor provides specified
effort over a stated period for fixed price.
Utilize a Firm Fixed Price contract when a reasonable basis for firm pricing exists. The limitations
depend entirely on Government’s ability to quantify and specify all aspects of the construction
desired and its ability to use negative incentives to ensure that the contractor adheres to the
specifications. This encourages the contractor to pursue grounds for change orders to increase
profit. Refer to FAR 16.202 for additional information.
B-3
Fixed Price with Economic Price Adjustment (FPEcPA)
When utilizing a Fixed Price with an Economic Price Adjustment (FPEcPA), the price paid by the
Government may be advised upward or downward if certain contingencies occur. This contract
type provides for price adjustment to protect parties against significant economic fluctuation or
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changes in contractor’s established prices. FPEcPA provisions can be based on established
(published) prices, actual costs, or cost index. Adjustments based on established prices are
restricted to industry-wide contingencies. Adjustments based on labor or material costs are limited
to contingencies beyond contractor’s control. This decreases the contractor’s risk and cost
responsibility. This contract type may be utilized when contingencies resulting from unstable
market or labor conditions can be identified and covered by a separate price adjustment clause.
The limitations of this contract type are the same as for Firm Fixed Price contracts. Refer to FAR
16.203 for additional information.
B-4
Fixed Price with Incentive Firm (FPIF)
A Fixed Price Incentive Firm contract is a fixed price contract that provides for adjusting profit and
establishing the final contract price by application of a formula based on the relationship of total
final negotiated cost to total target cost. The final price is subject to a price ceiling, negotiated at
the outset.
A fixed price incentive (firm target) contract specifies a target cost, a target profit, a price ceiling
(but not a profit ceiling or floor), and a profit adjustment formula. These elements are all negotiated
at the outset. The price ceiling is the maximum that may be paid to the contractor, except for any
adjustment under other contract clauses. When the contractor completes performance, the parties
negotiate the final cost, and the final price is established by applying the formula. When the final
cost is less than the target cost, application of the formula results in a final profit greater than the
target profit. Conversely, when final cost is more than target cost, application of the formula results
in a final profit less than the target profit or even a net loss. If the final negotiated cost exceeds the
price ceiling, the contractor absorbs the difference as a loss. Because the profit varies inversely
with the cost, this contract type provides a positive, calculable profit incentive for the contractor to
control costs.
A fixed price incentive (successive target) contract specifies that at a predetermined construction
point, the firm target cost will be negotiated and firm target profit determined in accordance with an
adjustment formula, and then either an FPIF or FFP can be negotiated. This contract type offers
the lowest contractor’s cost responsibility in the fixed price family of contracts.
Fixed Price Incentive contracts should be used when the assumption of a degree of cost
responsibility by contractors will provide incentive for effective cost control. These contracts can
combine with incentives on performance and schedule. Adequate cost or pricing date must be
available to establish targets. The sole purpose of these contracts cannot be to shift cost
responsibility to the Government and they require simultaneous agreement on all elements of
pricing structure. The Contractor must have a sound cost accounting system. The Government
assumes a larger contract monitoring role. These contracts are appropriate only for competitive
proposals or other than competitive procedures. Refer to FAR 16.403 for additional information.
B-5
Fixed Price with Award Fees (FPAF)
Award fee provisions may be used in fixed price contracts when the Government wishes to
motivate a contractor and other incentives cannot be used because contractor performance cannot
be measured objectively. These contracts shall establish a fixed price (including normal profit) for
the effort. This price will be paid for satisfactory contract performance. Award fee earned (if any)
is paid in addition to that fixed price. These contracts should also provide for periodic evaluation of
the contractor’s performance against an award fee plan. Refer to FAR 16.404 for additional
information.
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B-5
Cost Plus Incentive Fee (CPIF)
A Cost Plus Incentive Fee (CPIF) contract is a cost reimbursement contract that provides for an
initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable
costs to total target costs. The Government pays allowable cost and incentive fee with CPIF
contracts. The incentive fee is determined by comparing actual cost to target and adjusting target
fee in accordance with a fee adjustment formula (share ratio). Fee adjustments are established at
the outset within minimum and maximum limits. Performance incentives can be incorporated if
development is feasible and the Government performance objectives have been determined.
Contractor’s risk and cost responsibility is substantially reduced from those of the fixed price family
of contracts.
These contracts are appropriate where a profit incentive is likely to provide motivation for more
effective management and only for competitive procedures. The fee limits are the same as CPFF
contracts. Contractor must have a sound cost accounting system and the Government assumes a
large contract monitoring role. Refer to FAR 16.304 for additional information.
B-6
Cost Plus Award Fee (CPAF)
A Cost Plus Award Fee (CPAF) contract is a cost reimbursement contract that provides for a fee
consisting of (a) a base amount (which may be zero) fixed at inception of the contract and (b) an
award amount, based upon a judgmental evaluation by the Government, sufficient to provide
motivation for excellence in contract performance. The Government pays an allowable cost and
incentive fee. Contractors earn a base fee, which does not vary with performance and all or part of
an award fee based on subjective evaluation by the Government of the contractor’s performance.
The amount of the award fee is unilaterally determined by the Government and is not subject to
Disputed Clause. Evaluation of performance and corresponding partial payment of fee are made
at stated intervals. Contractor’s risk and cost responsibility is the same as with CPIF.
These contracts are appropriate where subjective evaluation is likely to increase contractor’s
motivation for excellence in such areas as quality, timeliness, technical ingenuity, and cost
effective management. They are also appropriate when finite performance objectives cannot be
established in advance to measure actual performance. The award fee may be used in
conjunction with other types of contracts. The base fee shall not exceed percentage of estimated
cost and the maximum fee limits are the same as CPFF contracts. The Government assumes
larger administrative burden forward fee determination. The contract amount, performance period,
and expected benefits must be sufficient to warrant the additional workload. Other limitations from
CPIF apply. Refer to FAR 16.305 for additional information.
B-7
Cost Plus Fixed Fee (CPFF)
A Cost Plus Fixed Fee (CPFF) contract is a cost reimbursement contract that provides for payment
to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee
does not vary with actual cost, but may be adjusted as a result of changes in the work to be
performed under the contract. This contract type permits contracting for efforts that might
otherwise present too great a risk to contractors, but it provides the contractor only a minimum
incentive to control costs. The Government pays allowable cost and fixed fee.
A completion form requires the contractor to deliver the end product (preferred form). Term form
requires specified level of effort over stated period of time. Consider utilizing these contracts
where CPIF contracts are not practical. Fees shall not exceed 15% of estimated cost for research
and development (R&D) or 10% of estimated cost for normal construction contracts. The price of
A-E contract shall not exceed 6% of all estimated costs of the public work or utility project.
Assistant Secretary of Defense, Production and Logistics (ASD P&L) approval are required in the
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U.S. if an A-E contract is over $25,000. Determination and findings must be approved by agency
head or designee. Other limitations of CPIF apply. Refer to FAR 16.306 for additional information.
B-8
Letter Contracts
Although seldom used, a letter contract is a method of contracting for design or construction when
work must be started immediately to minimize impacts to the mission. As an undefinitized
contractual instrument, it starts construction before negotiation of terms and price. This contract
type is not open-ended (indefinite quantity); rather, the specific design or construction needs must
be specified as completely as feasible under the given circumstances. The Contracting Officer
must complete definitization within 180 days after the date of the letter contract or before
completion of 40% of the work, whichever occurs first, in accordance with FAR 16.603.
The Contracting Officer must execute a Determination and Finding (D&F) showing that no other
contracting method is suitable before this method may be used. The letter contract must not
commit the Government to a definitive contract in excess of a not-to-exceed price, cannot be
amended to satisfy a new requirement unless the new requirement is inseparable from the existing
exigent requirement, and must not circumvent competition stipulations when required by other
sections of the FAR. For further information on this contract type, see FAR 16.603.
B-9
Time and Materials Contracts
A time and materials contract provides for acquiring supplies or services on the basis of the
following:
•
Direct labor hours at specified fixed hourly rates that include wages, overhead,
general and administrative expenses, and profit; and
•
Materials at cost, including, if appropriate, material handling costs as part of material
costs.
A time and materials contract may be used only when it is not possible at the time of placing the
contract to estimate accurately the extent or duration of the work or to anticipate costs with any
reasonable degree of confidence. Refer to FAR 16.601 for additional information.
B-10
Low Price Technically Acceptable Solicitation
Use of this type of two step sealed bidding as described in FAR Subpart 14.5 might occasionally
be appropriate, but use of this method requires award of the contract to the lowest priced
technically acceptable offer. The use of sealed bidding, as described in FAR Part 14, Sealed
Bidding, Subparts 14.1 through 14.4, is seldom appropriate for MILCON projects and can generally
be applied to routine projects, such as base maintenance delivery contracts. The number of IDIQ
contracts that a base may have in place generally is limited only by the requirement that sufficient
A-E workload exists to justify the multiple contracts and that these multiple IDIQ contracts do not
unduly restrict competition. When multiple A-E contracts are awarded from a single solicitation, the
fee limitations apply separately to each contract.
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APPENDIX C – COMMON DELIVERY METHODS
C-1
Traditional (Design-Bid-Build)
The Design-Bid-Build (DBB) process starts when the Air Staff issues a Design Instruction through
ACES-PM authorizing the AF DM/CM to start design. Typically, the PM works with a Design and
Construction Agent (DA/CA), such as the US Army Corps of Engineers (USACE), Naval Facilities
Engineering Command (NAVFAC), AFCEE or AF Waterbeach (UK only), to select a design firm,
usually an A-E already under contract with the DA/CA. The AF DM/CM and DA/CA work with the
Base level PM to arrange for a design charrette to be performed at the installation. The charrette
is a critical step since the scope of the project outlined in the official 1391 is fully defined during this
process. A charrette report is prepared that fully describes the project scope and cost. The report
becomes the basis for completion of the drawings, specifications, design analysis and cost
estimate. Usually interim reviews of the design documents occur at the 35%, and 95% design
stages. Occasionally, additional “over the shoulder” reviews (typically at 65% design) will be
required if project complexity warrants them. The DA will usually provide a back check design
review after which the contract drawings and specifications are ready for construction contract
action.
The contract drawings and specifications are transmitted to contracting with a written request to
contract for construction. The construction contractor is selected through a separate contract
action and competitive bid process where the offeror with the lowest bid is usually awarded the
contract. This delivery method provides management simplicity and a reasonable level of
confidence in the estimated cost for construction since the estimate is based on a 100% design.
Construction contracts are awarded based upon low competitive bids and bonding is required as
part of the Invitation for Bids (IFB). In the design-bid-build process, the Government retains a high
level of design control and receives a firm fixed price for the construction of a thoroughly defined
product. The PM continues to follow the project and update status in ACES-PM until construction
is complete, the user assumes Beneficial Occupancy of the facility and the construction contract is
closed out. Contract Closeout is the final phase of the project and is frequently the most difficult to
accomplish in a timely manner.
However, there are situations where the design-bid-build process creates concerns because
construction costs are not fixed until the project is completely designed. The design suffers from a
lack of input from contractors and subcontractors, since these groups are not involved in the
design process. The Architect-Engineer is not always the most knowledgeable about recent
innovations in construction technology. The responsibility for the successful result (the completed
project) is divided between the Architect-Engineer and the contractor. Divided responsibility
increases the potential for litigation.
C-2
Two-Step Design Build
This acquisition process provides another design tool to improve design execution (time and cost),
especially for late start inserts and supplementals.
The Process: AF DM/CM, BCE PM, and design agent PM mutually agree on the acquisition
process before design starts. Design charrette deliverable provides the prescriptive and narrative
technical portion of the design build solicitation. Step-one selects a short list of 3-4 contractors,
typically based on qualifications to execute a specific project, who will compete for the contract.
Step-two provides the short list contractors the technical requirements to prepare a technical
proposal and presentation that receives a technical score from a Technical Evaluation Board
(TEB). A Source Selection Board (SSB) receives a briefing from the TEB on the merits of each
proposal and its technical score that is used in combination with the bids to determine the best
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value offer. The RFP describes the Contractual Process in detail and indicates the stipend amount
to second step selected participants.
Sometimes, as an incentive to the proposers a stipend may be used to help offset some of the
proposal preparation costs. The stipend amount is determined as a factor of the overall PA of the
project, its complexity and the extent of detail required in the proposal. The AF DM/CM and Agent
coordinate these factors and determine final amount which is in the range of 0.1% to 0.2% of the
PA. Planning and Design (P&D) funds are the appropriate source for stipends.
The design-build approach addresses many of the issues of concern described in the DBB
process. The cost of the project is fixed earlier with design-build. The A-E of record and the
construction contractor collaborate to provide the best balance between design, construction
technology, and cost. The AF holds a single contract with one organization responsible for design
and construction, thus reducing conflict and potential litigation.
C-3
One-Step Design Build
With the One Step variation of the DB delivery method, the RFP is usually based on performance
specifications and a general description. Proposals are detailed and evaluated on technical merit
and cost. This type of delivery method should also be utilized only when well established industry
standards and materials are available and control after contract award is not desired. Potential
vendors must be willing to risk higher costs to compete.
C-4
Bridging Design Build
The Bridging variation of the DB delivery method involves a detailed description of the project from
AF’s perspective and utilizes preliminary design drawings and specifications. This provides the DB
contractor with latitude in the final detailed development of the design and in the execution of
working drawings. The AF must approve specific design packages for compliance with standards
in the RFP before releasing the contractor to build. This method offers greater AF control, but must
thoroughly communicate all requirements thus stable requirements are important. The project can
be more complex than for Turnkey or One Step and potential vendors have lower cost risk.
C-5
Design Build+ (DB+)
DB+ is similar to Traditional Design Build, however, it is essentially a form of design and
construction that retains all the advantages and flexibility of traditional Design-Build. It still allows
for use of performance specs and a low level of design. It allows the flexibility of award to the
contractor offering the “best value” instead of going to the low bidder. The construction delivery
team, known as the DB+ contractor, is brought “on-board” during the advanced planning activities,
the planning, site selection, and programming phase of effort and they remain on the team
throughout construction and the project delivery effort. The construction industry today often refers
to this process as either Construction Management at Risk or Design-Build at Risk. Key
distinguishing features of DB+ are:
•
•
•
•
Uses multi-award, IDIQ contracts to accomplish tasks
DB+ construction team is “on-board” at design start - part of the team
Is a program ceiling contract vice an individual ceiling contract for each contractor
Program ceiling contract creates incentive for cadre members to perform great work
in order to get more work
The winning DB+ construction team performs surveys and investigations during design and as
such will be held accountable for their work during construction (differing/unforeseen site
condition).
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C-6
Design Build (Turnkey)
Another form of design-build is called Turnkey. A Turnkey project establishes a fixed price, usually
based on a written RFP with no sketches or drawings. Air Force personnel prepare the RFP
defining the minimum design requirements (usually in a narrative form), and the design-build teams
submit design concepts along with price proposals and qualifications packages. This form of
acquisition is usually selected for repetitive type construction projects such as housing, temporary
living facilities, etc. This type of contracting has the highest level of risk for the offeror and often
involves a significant amount of money for preparation of each proposal. Turnkey construction
may include a requirement for the offeror to complete land acquisition in order to achieve the final
facilities.
The Turnkey variation of the DB delivery method involves an RFP that contains little more than a
general description of the project requirements. Proposals are more technical and detailed.
Functions other than design and construction are typically included, such as land acquisition,
financing, and operations and maintenance (O&M). This type of delivery method should be utilized
only when well established industry standards and materials are available and control after
contract award is not desired. Potential vendors must be willing to risk higher costs to compete.
C-7
Design Build (Fast Track)
The Fast Track delivery method is a form of design-build, in which construction begins before
working drawings and specifications are complete, and work is based on multiple bid packages for
each phase of work, with all contracts and managed by the AF. This delivery method offers the
highest potential for reduced acquisition time and cost. Disadvantages are that it is more complex
and time consuming to administer, and requires greater construction management skills. There is
also the potential for higher costs and schedule risk. The best application for the Fast Track
delivery method is for bona fide emergency where time savings carries high premium. The work
must also be divisible into discrete packages.
C-3